OpenAI is gearing up to unveil its AI-powered search product, intensifying its rivalry with Google in the realm of search technology. The announcement, slated for Monday, comes amidst reports of OpenAI’s efforts to challenge Google’s dominance and compete with emerging players like Perplexity in the AI search space. While OpenAI has remained tight-lipped about the development, industry insiders anticipate a big step in the AI search landscape.
The timing of the announcement, just ahead of Google’s annual I/O conference, suggests OpenAI’s strategic positioning to capture attention in the tech world. Building on its flagship ChatGPT product, the new search offering promises to revolutionise information retrieval by leveraging AI to extract direct information from the web, complete with citations.
Why does it matter?
Despite ChatGPT’s initial success, OpenAI has faced challenges sustaining user growth and relevance during the chatbot’s evolution. The retirement of ChatGPT plugins in April indicates the company’s engagement to refine its offerings and adapt to user needs.
As OpenAI aims to expand its reach and enhance its product capabilities, the launch of its AI search product marks a breakthrough in its quest to redefine information access and reshape the future of AI-driven technologies.
Microsoft Corp. and Google owner Alphabet Inc. impressed investors surpassing Wall Street expectations with robust quarterly results driven by AI and cloud computing. The surge in cloud revenue, fueled partly by the increasing use of AI services, propelled both companies’ shares higher in late trading, with Alphabet soaring up to 17% and Microsoft gaining 6.3%.
The tech giants are in a fierce competition for AI dominance, with Microsoft partnering with startup OpenAI to challenge Google’s longstanding dominance in internet search. Yet, the latest results indicate significant growth opportunities for both companies in the AI and cloud computing landscape.
Also, 2024 is hailed as the year of generative AI deployment, a technology that creates text, images, and videos from simple prompts. Executives from Alphabet and Microsoft highlighted how these programs drive business growth for their cloud computing units, with corporate clients increasingly investing in long-term cloud infrastructure.
Why does it matter?
Google’s cloud operation, which once lagged behind competitors, is now thriving, posting a significant profit and attracting enterprise clients. Despite setbacks in the consumer market, Google Cloud’s AI offerings have gained traction among corporate customers, driving substantial revenue growth.
Similarly, Microsoft’s Azure cloud computing platform saw a 31% sales increase, surpassing analyst expectations. Integrating AI technology across Microsoft’s product line, mainly through its partnership with OpenAI, is successfully driving customer adoption and revenue growth. With promising uptake for AI tools and services, both companies are optimistic about the future of AI-driven solutions in cloud computing.
President Tsai Ing-wen recently inaugurated Google’s second R&D office in Taiwan. Google is intensifying its commitment to its device ecosystem by expanding its hardware R&D hub in Taiwan. The company already has data centers on the island and routes several of its undersea cables that connect the US and Asia through Taiwan.
In an interview with Nikkei Asia, Elmer Peng, vice president of hardware at Google, stated, “As of 2024, we’ve increased 20-fold the workforce in the past ten years in Taiwan, and our team continues to grow. …We are really serious about building an ecosystem”. By bolstering its hardware development resources in Taiwan, Google seeks to leverage the island’s supply chain and skilled workforce.
Presently, Google already has a multinational team numbering in the thousands, tasked with the development of various products, including Pixel phones, Fitbit wearables, and Nest smart home devices. It is actively collaborating with component manufacturers for its next generation of device development, including semiconductors, image sensors, and displays. By expanding its hardware lineup, Google seeks to secure more users into its environment.
Why is this important?
Taiwan being the home to the largest Google hardware R&D center outside the US, underscores its significance in the global supply chain, enabled by its solid industrial growth and resilient supply chains amid the pandemic.
Google announced that it will update its policies to stop allowing political ads in Brazil through Google Ads, including YouTube, to display alongside search results and other types of advertisements contracted through the company’s tool. This update, set to take effect in May, aligns with the implementation of electoral resolutions for 2024.
One notable development is the resolution passed by the Superior Electoral Court (TSE) in late February, which requires establishing ad libraries and repositories for political and electoral content on platforms for real-time monitoring. This resolution also bars companies from providing content promotion services for ads that are notably false or severely misleading, thus posing a potential threat to the integrity of the electoral process.
In this regard, the resolution states that when such content has been promoted ‘irregularly,’ the Electoral Court may require platforms to disseminate, ‘through promotion and at no cost,’ informative content that clarifies notably false information ‘in the same manner and scope of the original promotion.’ Such measures are to be enforced continuously, even in non-election years and pre and post-election periods.
In 2022, Google introduced Brazil to its transparency reports on political ads across its platforms, initially focusing on federal-level candidates and later expanding to include state-level candidates. However, with the new TSE resolution, the scope broadens to include elected officials, candidates, government proposals, legislative projects, voting rights, and other political matters.
Why does it matter?
The TSE resolutions represent concrete measures against a long-standing concern in Brazil regarding the role of social media platforms in the country’s political landscape. While Google appears willing to comply with government measures, not all platforms share this stance, particularly X. Tensions peaked recently when Elon Musk engaged directly in a dispute with Supreme Court Justice Alexandre de Moraes, who is investigating digital misinformation and an alleged coup attempt during former President Jair Bolsonaro’s tenure. Musk claimed that Moraes’s decision to block specific accounts was unconstitutional.
An AI venture backed by Google is teaming up with the US military to harness AI for disaster response. Bellwether, part of Alphabet’s X innovation hub, announced its collaboration with the National Guard and the Defense Innovation Unit (DIU) to streamline the Guard’s disaster response processes. The initiative aims to leverage AI and machine learning to rapidly analyse aerial imagery of disaster scenes, identifying damage to critical infrastructure to aid in resource deployment.
Traditionally, the National Guard conducts damage assessments manually, which can lead to delays in the initial response due to the time required for analysis. Bellwether’s prototype utilises AI and ML to analyse disaster-affected areas in seconds, providing labelled maps of affected areas. This technology enables quicker decision-making regarding resource allocation for disaster response teams.
Colonel Brian McGarry, leading the National Guard’s operations division, emphasised the significance of AI in expediting critical information delivery during disasters. By automating routine tasks like image analysis and labelling, AI can significantly accelerate the response process, ultimately saving lives in affected communities.
Why does it matter?
Google’s partnership with Bellwether underscores the potential of AI in disaster response efforts. Additionally, Bellwether is developing a wildfire prediction tool that utilises historical data and environmental factors to forecast fire risk, demonstrating the broader applications of AI in mitigating natural disasters.
Organisators of the demonstrations confirmed that Google has fired an additional 20 employees in response to protests over its cloud-computing contract with the Israeli government. This brings the total number of terminated workers to 50. The group leading the protests, ‘No Tech for Apartheid’, expressed concern that some fired employees were bystanders rather than active participants in the protests, labelling the mass firings as retaliatory.
Confirming the terminations, a Google spokesperson stated that an investigation into disruptions during the protests on 16 April had concluded. The spokesperson emphasised that all dismissed employees were directly involved in disruptive activities within the company’s premises. In response, the worker group vowed to continue their activism within Google, denouncing the company’s actions as an attempt to suppress dissent.
The firings come amidst a broader societal debate over corporate responsibility and workplace activism, particularly regarding issues such as the US government and business support for Israel. CEO Sundar Pichai recently urged Google employees to refrain from discussing politics in the workplace, emphasising the company’s focus on business matters.
The situation underscores tensions between corporate interests and employee activism, raising questions about the boundaries of free expression and dissent within tech companies like Google.
Japan’s antitrust watchdog has issued a directive to Google, stating that the US tech giant must address its advertising search restrictions that affect Yahoo in Japan. According to the Japan Fair Trade Commission, Google’s practices were found to impede fair competition in the advertising market, particularly in relation to Yahoo Japan Corp., which merged with Line, a Japanese social media platform.
The issue stems from Google’s keyword-targeted search advertising services, which Yahoo Japan utilised after a collaboration initiated in 2010. The Fair Trade Commission claims that Google imposed restrictions in its advertising agreement with Yahoo Japan that hindered competition in targeted search ads for over seven years. Google responded by dropping these restrictions following an investigation by the FTC into potential violations of the Anti-Monopoly Law.
In response to the commission’s findings, Google has pledged full cooperation and emphasised that the commission did not find outright violations of anti-monopoly laws. The company committed to implementing the commission’s directives to enhance search functions for Japanese users and advertisers. Meanwhile, Line Yahoo declined to comment on the matter.
Why does it matter?
Google will remain under scrutiny for the next three years to ensure compliance with necessary changes. However, the commission did not impose fines or other penalties on the tech giant, which remains popular in Japan. This action by the commission comes shortly after another legal setback for Google in Japan, where Japanese doctors filed a civil lawsuit against the company for allegedly allowing groundless derogatory and false comments on its platform. In response, Google stated its continuous efforts to combat misleading or false information through human oversight and technological solutions.
A draft report from the UK Information Commissioner’s Office (ICO) raises concerns about Google’s Privacy Sandbox, which is aimed at preserving privacy in online ad targeting and analytics. The report highlights gaps that could be exploited to compromise privacy and track individuals online. This technology seeks to replace current tracking methods with more privacy-conscious alternatives, but its credibility hinges on its ability to deliver privacy assurances.
If Google’s Privacy Sandbox fails to address regulatory, community, and competitive challenges, it could collapse, leaving adtech rivals to continue tracking users through existing or alternative methods. The ICO report represents another setback for Google’s attempts to reconcile ad targeting with privacy laws like GDPR. Google’s strategy involves moving ad auction mechanics to users’ local devices through web APIs, such as the Topics API in Chrome, which aims to convey user interests to advertisers without identifying individuals.
Critics, including the Electronic Frontier Foundation and rival browser maker Vivaldi, have raised concerns about the Privacy Sandbox’s support for behavioural advertising and its reliance on advertisers’ good behaviour rather than technical guarantees for privacy. Given Google’s market dominance and significant revenue tied to online advertising, scepticism persists about rebuilding ad architecture on its platforms. Both regulators and industry groups like the IAB have expressed concerns about the Privacy Sandbox’s potential competitive disadvantages and limitations, suggesting that Google may need to address these issues before proceeding.
Despite challenges and criticism, Google remains committed to Privacy Sandbox technologies, emphasising their aim to enhance privacy while maintaining targeted advertising. The company continues to engage with regulators and stakeholders to address concerns and ensure a solution that benefits users and the entire advertising ecosystem.
Google has responded to a bill proposing payment from tech giants like Google and Meta to news publishers by blocking news links for California-based news organisations in search results for certain Californians. Meta, in turn, threatens to block all news links on its social platforms if the bill is enacted.
This decision comes amidst vigorous lobbying efforts from these companies, arguing that the legislation would impose a ‘link tax’ and disrupt the free exchange of information online. Some small news publishers and business groups also oppose the bill, citing fears of diminished discoverability and potential negative consequences for the broader business landscape. On the other hand, proponents argue that such laws are necessary to sustain journalism in an era where traditional revenue streams have dwindled.
Despite labelling its action as a ‘short-term test,’ Google faced sharp criticism from politicians and publishers who condemned the move as an abuse of power. Nonetheless, California news publishers have not yet felt significant repercussions from Google’s actions.
Why does it matter?
In Australia and Canada, heated battles ultimately ended in compromises. Google and the government brokered a deal in Canada, establishing a yearly $73.5 million news fund for Canadian providers. Nevertheless, Meta persists in blocking news links on Facebook and Instagram in Canada, leading to a marked decline in traffic for Canadian news organisations. Meanwhile, the outcome of the standoff in California is still uncertain, but one thing’s for sure: the intense debates will persist.
The UK’s privacy regulator has expressed concerns about Google’s proposed cookie replacements, stating that they must do more to safeguard consumer privacy in the UK. According to internal documents, Google’s Privacy Sandbox initiative, aimed at phasing out third-party cookies and reducing tracking, leaves gaps that could compromise anonymity.
The Information Commissioner’s Office (ICO) has reportedly drafted a report highlighting the potential for exploitation within Google’s proposed technology. Despite Google’s plans to eliminate third-party cookies by the latter half of 2024, the ICO is pushing for changes to enhance privacy protections.
The ICO’s efforts include engaging with the UK’s Competition and Markets Authority (CMA), which reviews Google’s plans amidst concerns about their potential impact on competition in digital advertising. The CMA has pledged to consider the ICO’s recommendations as part of its evaluation process.
In response, a Google spokesperson emphasised ongoing engagement with privacy and competition regulators globally, aiming to find a solution that benefits users and the digital ecosystem. Both the ICO and CMA have yet to comment on the matter.
