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Alphabet investors may want to prepare for some volatility moving forward. However, shares fell about 5% as the company also reported lower-than-expected YouTube advertising revenue. On top of that, Alphabet highlighted plans to boost capital expenditures as it races to meet rising artificial intelligence demand. That is due in part to tough advertising comparisons amid the anniversary of a particular strong period for Asia and Pacific retailers. The move to 'future proof' business Some analysts and investors are reading the tea leaves with a positive tilt, however.
Persons: Ruth Porat, Sundar Pichai, Porat, Mark Shmulik, Brent Thill, Benjamin Black, Ross Sandler, Gene Munster, Goldman Sachs, Eric Sheridan, Bank of America's Justin Post, Truist's Youssef Squali, Citi's Ronald Josey Organizations: Jefferies, Deutsche Bank, Barclays, Bank of America's, DR Locations: Asia, Pacific
In today's big story, we're looking at another Tesla earnings report that was light on details about big future plans . The approach worked well last quarter when Tesla's earnings report was even worse than expected . However, big-picture plans without concrete details fell flat for investors this time around. It's Tesla's silver lining amid the EV market slowdown. But as beneficial as competitors were to Tesla this quarter, others seem to be gearing up for battle.
Persons: Jordan Strauss, Chelsea Jia Feng, Elon, Katherine Tangalakis, Hannah Getahun, that's, , Musk, Toby Melville, BI's Nora Naughton, It's, BI's Jordan Hart, Sundar Pichai, Waymo, Jenny Chang, Rodriguez, Wall, Keith Lerner, Ed Yardeni, Michael M, Tyler Le, Jensen Huang, Rebecca Zisser, Biden, Benjamin Netanyahu, Dan DeFrancesco, Jordan Parker Erb, Hallam Bullock, Annie Smith, Amanda Yen Organizations: Business, Chelsea, AP, Tesla, Getty, BI Supply, Nvidia, Big Tech, Hollywood, AWS, Microsoft, Paramount, Digital, Google, IBM, Ford Motors, Samsung, Galaxy, The Locations: Waymo, San Francisco, Phoenix, New York, Paris, London
Alphabet stock dropped Wednesday after earnings as Wall Street parsed mixed results. AdvertisementAlphabet stock slid Wednesday as investors digested second-quarter results that beat earnings estimates but fell short in other key areas. The mixed results sent the stock down 5% in Wednesday afternoon trading, but Goldman Sachs analysts say they remain optimistic about the company's artificial intelligence opportunities. Goldman Sachs was upbeat in its analysis, raising Alphabet's price target from $211 to $217 in a note after the company released earnings. AdvertisementGoldman says its optimism comes largely from Alphabet's AI opportunity.
Persons: Goldman Sachs, , Goldman, Sundar Pichai, Pichai Organizations: Service, YouTube, Wall
A Waymo rider-only robotaxi is seen during a test ride in San Francisco on Dec. 9, 2022. Alphabet is again investing in its self-driving car unit Waymo — this time with $5 billion. CEO Sundar Pichai said on the earnings call that Waymo provides 50,000 weekly paid trips, primarily in San Francisco and Phoenix. In June, Waymo removed the waitlist and opened Waymo rides to all San Francisco users. "Alphabet has committed up to $5B to Waymo," Waymo CEO Tekedra Mawakana said on X.
Persons: Waymo, Ruth Porat, Porat, Sundar Pichai, Andreessen Horowitz, Cruise, Tekedra Mawakana Organizations: Securities, Exchange Commission, Plan Investment Board, Fidelity Management & Research Company, General Motors Locations: San Francisco, Phoenix, Francisco, AutoNation, Canada, Waymo, Tesla
Strong numbers in the company's search and cloud businesses more than offset the slight misses in the YouTube and network units. Cloud recorded a couple of big firsts: exceeding $10 billion in revenue, along with $1 billion in operating income. Whereas investors were — and many still are — concerned about what generative AI might mean for Alphabet's search revenue, the opposite appears to be the case, at least for now. Google Cloud revenue grew roughly 28% to more than $10 billion for the first time. Strong numbers in the company's search and cloud businesses more than offset the slight misses in the YouTube and network units.
Persons: we're, capex, Sundar Pichai, Pichai, Philipp Schindler, Schindler, Ruth Porat, Eli Lilly, Anat Ashkenazi, Jim Cramer's, Jim Cramer, Jim, Loren Elliott Organizations: YouTube, Microsoft, Club, Nvidia, Lens, CTV, Nielsen, Google, buybacks, CNBC, Government, Society, Calif, Bloomberg, Getty, Meta Locations: That's, U.S, Stanford
Waymo has provided over 50,000 paid autonomous rides weekly in active areas, according to Alphabet. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . "Waymo is a real leader in the space and getting rave reviews from users," Alphabet CEO Sundar Pichai said. This story is available exclusively to Business Insider subscribers.
Persons: Waymo, , Sundar Pichai Organizations: Service, Google, Business Locations: Pichai, San Francisco, Phoenix, Bay
Google parent company Alphabet is set to report its second-quarter earnings Tuesday after the market closes. They expect modest growth in key areas such as cloud and overall revenue, after a quarter of leadership moves, AI announcements and market expansions. During the second quarter, Alphabet saw a number of expansion updates, including for its self-driving car unit Waymo, which opened its service to all San Francisco users. Reid urged employees to continue pushing AI products, suggesting they can fix mistakes as users and employees find them. Alphabet also announced a new finance chief, Anat Ashkenazi, who came from Eli Lily, the world's most valuable drugmaker.
Persons: Sundar Pichai, Barack Obama, America's, Liz Reid, Reid, Anat Ashkenazi, Eli Lily, Ashkenazi, Ruth Porat Organizations: Google, LSEG Revenue, TAC, CNBC Locations: Francisco, Phoenix, India, Mexico
Wiz has walked away from a $23 billion deal to be acquired by Google, in what would have been the search giant's largest-ever deal, telling employees it would pursue an initial public offering as it initially planned. The deal would have nearly doubled the $12 billion valuation of the startup from its most recent round of funding. Alphabet's cloud segment has been under pressure to grow amid competition from frontrunners Microsoft and Amazon, something the Wiz deal would have helped with. The shift benefited Wiz, which can flag security issues for applications and data on the Amazon, Google, Microsoft and Oracle public clouds. In an interview with CNBC's Sara Eisen and Carl Quintanilla at the New York Stock Exchange last year, Eisen asked Rappaport if he wants to take the startup public.
Persons: Sundar Pichai, Wiz, Assaf Rappaport, Rappaport, Thomas Kurian, Brendan Burke, It's, Doug Leone, Covid, Sid Trivedi, CNBC's Sara Eisen, Carl Quintanilla, Eisen Organizations: Alphabet Inc, Government, Society, Google, CNBC, Microsoft, Index Ventures, Insight Partners, Lightspeed Venture Partners, Sequoia, PitchBook, Intuit, Ventures, Sequoia Capital, Wiz's, Wiz, Oracle, Foundation Capital, Motorola, Lenovo, New York Stock Exchange Locations: Stanford , California, Sequoia
Air Canada's customer service chatbot told Moffatt he could claim the discount after the flight. Botshit is one example of how the use of AI might worsen companies' customer service. In January, a UK parcel company removed its new AI customer service chatbot after it swore at a customer. AdvertisementAnd when Google rolled out its AI chatbot Gemini earlier this year, it produced historically inaccurate images of people of color. However, the researchers argued that customer service is the least risky use of AI for businesses.
Persons: , Jake Moffatt's, chatbot, Moffatt, Ian P, McCarthy, Timothy R, Hannigan, André Spicer, Edelman, What's, Dan Davies, Sundar Pichai, Spicer Organizations: Service, Air Canada, Air, Business, Harvard, Edelman Data, Intelligence, Microsoft, LinkedIn, Google Locations: Canada's, New York
How did the Democrats lose Silicon Valley? The loudest donors in Silicon Valley are promoting Trump at a time when the tech world as a whole is ascending in Washington, with billionaires using their ballooning wealth and media foothold to exert influence. Their voices are made all the more prominent amid the conspicuous neutrality of Big Tech leaders like the Google C.E.O. Sundar Pichai and the Meta chief Mark Zuckerberg, who are possibly afraid of invoking Trump’s ire and employee backlash. Musk was brushed off by President Biden over his anti-union stance and excluded from an electric vehicle event at the White House in 2021.
Persons: Elon Musk, David Sacks, Marc Andreessen, Trump’s, Sundar Pichai, Mark Zuckerberg, Biden, Tesla Organizations: Elon, Trump, Big Tech, Google, White House Locations: Silicon Valley, Washington
Ozy Media and founder Carlos Watson were convicted of fraud by a Brooklyn federal jury on Tuesday, in a case accusing them of lying to investors about the now-defunct startup’s finances and sham deals with Google and Oprah Winfrey. Watson, a former cable news anchor and investment banker, and Ozy were each convicted of securities fraud conspiracy and wire fraud conspiracy, while Watson was also convicted of identity theft. The verdict follows a six-week trial that featured testimony by two former Watson deputies, who pleaded guilty to fraud. Ozy folded shortly after The New York Times reported on former chief operating officer Samir Rao’s impersonation of the YouTube executive. He said prosecutors’ view of Ozy’s finances was simplistic and failed to appreciate the nuances of media industry dealmaking.
Persons: Carlos Watson, Oprah Winfrey, Watson, Ozy, Goldman Sachs, Prosecutors, , Breon Peace, Samir Rao’s, Rao, Alex Piper, Sundar Pichai, Watson’s, “ That’s, that’s, Organizations: Ozy Media, Google, “ Ozy Media, New York Times, YouTube, Ozy Locations: Brooklyn, California
Google is in advanced talks to acquire cybersecurity firm Wiz for $23 billion, The Wall Street Journal reported Sunday, citing people familiar with the matter. It had been eyeing an IPO as recently as May, when the company achieved a valuation of $12 billion. Google has made large cyber acquisitions before: The company acquired cybersecurity firm Mandiant for $5.4 billion two years ago. But its reported talks with Wiz would suggest that the company has developed a fresh appetite for M&A, competitive concerns notwithstanding. Google had been in talks to acquire sales software maker Hubspot, CNBC previously reported, but its pursuit had reportedly cooled.
Persons: Sundar Pichai, Wiz, Assaf Rappaport Organizations: Alphabet Inc, Government, Society, Google, Street, Wiz, Ventures, Insight Partners, Sequoia Capital, CNBC Locations: Stanford , California
The vibe is trail-dad chic — think puffy Patagonia vests and Apple watches and stealth-wealth cashmere pullovers. Sun Valley is also widely believed to be the place where Jeff Bezos decided to buy The Washington Post, and the site of the meet-cute between Comcast and NBC Universal. There are also some notably absent names from the guest list this year. Bob Iger, CEO of Disney and one of the most recognizable business leaders on the planet, wore a name tag and aviators at last year's Sun Valley summit. Questions about President Joe Biden’s ability to campaign have wealthy donors and Democratic officials in a tizzy.
Persons: , Jeff Bezos, Warren Buffett, Sam Altman, Bob Iger, Tim Cook, Meta’s Mark Zuckerberg, Google’s Sundar Pichai, Rupert Murdoch, Oprah Winfrey, David Zaslav, Zaslav, Kevin Dietsch, There’s Buffett, Greg Abel, Buffett, Astrid, Elon Musk, Joe Biden’s, Gretchen Whitmer, Josh Shapiro, Wes Moore, Biden, it’s, Hamilton Nolan Organizations: New, New York CNN, Friedman, Allen & Company, Washington Post, Comcast, NBC Universal, Idaho Mountain Express, Disney, Warner Bros, Bloomberg, Variety, Discovery, Paramount, Democratic Locations: New York, Hailey , Idaho, Sun Valley , Idaho, Idaho, America, Sun
AI systems need lots of computers to make them work. The end result has been that Google’s greenhouse gas emissions have soared 48% since 2019, according to the tech giant’s annual environment report. An October study from Dutch researcher Alex de Vries estimated that the “worst-case scenario” suggests Google’s AI systems could eventually consume as much electricity as the country of Ireland each year, assuming a full-scale adoption of AI in their current hardware and software. It added that data center electricity consumption is currently growing faster than it can bring carbon-free electricity sources online. The company has also used AI to suggest more fuel-efficient routes to drivers using Google Maps.
Persons: , Sundar Pichai, Alex de Vries Organizations: New, New York CNN, Google, Big Tech, International Energy Agency Locations: New York, Ireland
Peter Thiel said he only lets his kids use screens for 1.5 hours a week. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . Or my kids, says Peter Thiel. This story is available exclusively to Business Insider subscribers.
Persons: Peter Thiel, Evan Spiegel, Sundar Pichai, , Andrew Ross Sorkin, Thiel Organizations: Service, Aspen Ideas, PayPal, Facebook, Business Locations: Colorado
In today's big story, we're looking at how young people are booking their summer vacations , finances be damned. AdvertisementSurveys from Credit Karma, Bankrate, and Bank of America show Gen Zers and millennials are willing to go on summer vacation at all costs… literally. Almost half of millennials surveyed (47%) were willing to take on debt to fund their travel plans, with Gen Z not far behind (42%). AdvertisementAlmost a quarter of young people surveyed by Credit Karma expected to rack up $2,000 in debt this summer. And about 10% of that group were willing to push it even further, surpassing $4,000 in summer debt.
Persons: , Joe Biden's, Donald Trump, Rebecca Zisser, John Towfighi, Zers, millennials, Gen, it's, you'll, Credit Karma, Klaus Vedfelt, That's, Rob Chisholm, Alyssa Powell, he's, Joseph Stiglitz, Trump, Stiglitz, Justin Sullivan, Chelsea Jia Feng, ChatGPT, Mark Zuckerberg, Sundar Pichai, — livestreaming, Twitch's Dan Clancy, Tyler Le, Gigi, Sackler, Ebrahim Raisi, Dan DeFrancesco, Jordan Parker Erb, Hallam Bullock, Annie Smith, Amanda Yen Organizations: Service, Biden, Business, Credit, Bank of America, Getty, SEC, Purdue Pharma, Dua Lipa, Coldplay Locations: Amalfi, Vegas, ., Glastonbury, New York, London
Read preview"Try talking with it here," Sam Altman wrote on X, linking to an "early demo" of ChatGPT. AdvertisementIt made OpenAI the poster child of the race to create human-like artificial general intelligence, which has become Altman's stated mission. OpenAI still has no release date for Sora, the model that generates videos based on users' text prompts and was first demonstrated publicly in February. AdvertisementThis month did give OpenAI something to celebrate; Apple announced that it was partnering with the company to bring ChatGPT to iPhones, iPads, and Macs. ChatGPT gave OpenAI a headstart in the race to make AGI.
Persons: , Sam Altman, ChatGPT, Altman's, OpenAI, Scarlett Johansson, Altman, Sora, Sundar Pichai, Claude, OpenAI isn't Organizations: Service, Business, Tech, Microsoft, Apple, Google, Meta, ChatGPT, Chatbot Locations: Silicon Valley, GPT
A number of Big Tech companies have laid off staff this year, including Google, Tesla, Apple, and dozens more. Ironically, companies haven't been slowing down on innovation, with many releasing a constant stream of AI updates and product launches. Mark Zuckerberg shared his theory on the first round of industry-wide layoffs in an interview with "Morning Brew Daily" in February. AdvertisementSalesforce CEO and cofounder Mark Benioff also relayed the same sentiment in a letter to employees announcing layoffs in 2023. But for the moment, tech companies don't seem to be slowing down on AI advancement.
Persons: , Mark Zuckerberg, Jason Citron, Sundar Pichai, Mark Benioff, Zuckerberg, Emily Chang, Wayfair's cofounders, Niraj Shah, Steve Conine, Jobs, Satya Nadella, Arvind Krishna, Drew Houston Organizations: Service, Big Tech, Google, Apple, Business, Bloomberg, ARM, IBM, Dropbox Locations: Zuckerberg's
McDonald's to end AI drive-through test with IBM
  + stars: | 2024-06-17 | by ( Kate Rogers | ) www.cnbc.com   time to read: +4 min
The drive-through menu at a McDonald's restaurant showing various meal options and promotions, in Buttonwillow in Kern County, California, on 23, 2024. The fast-food giant will end a test run of its AI drive-through technology partnership with IBM in more than 100 restaurants. In a statement, McDonald's told CNBC it is not ruling out potential AI drive-through plans in the future, even though it ended the IBM partnership. In statement, IBM said it will work with McDonald's on "a variety of other projects" as the test ends. While McDonald's AI plans for the future are unclear, all eyes will be on Alphabet 's Google.
Persons: Mason Smoot, McDonald's, Sundar Pichai, Peter Saleh, Saleh Organizations: IBM, CNBC, McDonald's, Yum Brands, Mastercard, Google Locations: Buttonwillow, Kern County , California, Del Taco, Barcelona
Sundar Pichai, the chief executive of Google, said in a New York courtroom on Friday that he never discussed a possible takeover of Ozy Media. The government alleged in court filings and at trial that Mr. Watson falsely claimed to a prospective investor that Ozy had received a $600 million takeover offer from Google. Mr. Pichai said he interviewed Mr. Watson in February 2021 for a full-time role managing Google’s relationships with news publishers. To accept the role, Mr. Watson would have had to step down from Ozy, which Google recognized could harm the digital media start-up, another Google executive testified on Thursday. As part of the hiring discussions, Google considered investing about $25 million in Ozy “to help with the transition,” Mr. Pichai testified when he briefly took the stand.
Persons: Sundar Pichai, Pichai, Carlos Watson, Ozy, Watson, , Mr Organizations: Google, Ozy Media Locations: New York, Ozy
"I don't think we should take away from this that we shouldn't take risks," Reid said. When we find new problems, we should do the extensive testing but we won't always find everything and that just means that we respond." Reid's comments come at a critical moment for Google, which is scrambling to keep pace with OpenAI and Microsoft in generative AI. "You may have seen stories about putting glue on pizza, eating rocks," Reid told employees at the all-hands meeting. Reid was introduced on stage by Prabhakar Raghavan, who runs Google 's knowledge and information organization.
Persons: Liz Reid, Reid, OpenAI, Sundar Pichai, Barack Obama, America's, Prabhakar Raghavan, we've, we're Organizations: CNBC, Google, Microsoft
This disastrous mindset has hollowed out Silicon Valley's ability to innovate and caused regular people to grow increasingly frustrated with everyday tech. The large platforms have generally ignored this feedback for one big reason: The tech industry has been taken over by career managers. Now Google Search is more profitable and worse, elevating spammy content and outright scams, a problem exacerbated by artificial intelligence. AdvertisementBut today's tech products feel built to sell a dream of the future rather than solve a customer's existing pains. As long as the tech industry is controlled by people who don't build things, it will continue to build products that help raise growth metrics rather than help consumers with tangible problems.
Persons: scammers hawking, Meta's, Hewlett Packard, Kevin Systrom, Mike Krieger, Adam Mosseri, Systrom, Krieger, Mosseri, Mark Zuckerberg, Instagram, Kylie Jenner, Kim Kardashian, Sundar Pichai, Prabhakar Raghavan, Raghavan, Ben Gomes, Gomes, it's, Sam Altman, Helen Toner, Ilya Sutskever, Larry Summers, Fidji Simo, Meta —, , Steve Jobs, Steve Wozniak Organizations: Facebook, Google, Microsoft, Amazon, Oracle, Adobe, Meta, Builders, Apple, Xerox, HP, Department, Reuters Institute, Oxford University, Silicon Valley Locations: Silicon, Silicon Valley
"The stat that really blew my mind is that the forecast cash flow for Nvidia for 2026 is higher than Microsoft ," Yuri Khodjamirian, CIO at Tema ETFs, told CNBC's Squawk Box Europe, emphasizing the remarkable growth trajectory of Nvidia. This projection is driven by the surging demand for Nvidia's AI chips, as software companies increasingly rely on these powerful processors to fuel their artificial intelligence models. The spending by software giants such as Microsoft , Amazon and Google is propelling the share prices of Nvidia and other semiconductor companies to new heights. NVDA 1Y line Khodjamirian noted that Nvidia is "setting the pace" in the industry with annual product announcements that competitors struggle to match. Ginsberg predicts that Fortune 500 companies will increasingly outsource their AI and algorithmic business to cloud service providers, benefiting companies like Google Cloud and Microsoft Cloud.
Persons: Yuri Khodjamirian, CNBC's, Nvidia's, Microsoft's –, Khodjamirian, Anthony Ginsberg, Ginsberg, Satya Nadella, Sundar Pichai Organizations: Nvidia, Microsoft, Google, Apple, Gins, Tech, CNBC Pro, Amazon Locations: America
A group of stocks are at the helm of the artificial intelligence revolution — and they are worth buying and holding for the long run, according to Evercore ISI. To compile this list, Evercore scanned the Russell 1000 for companies whose executives mentioned AI on call transcripts in 2023 more frequently compared to their peers. Also on Evercore's list is Google parent company Alphabet , which notched 169 AI mentions last year. The company's suite of AI products include its own large language model, Gemini, and Vertex AI, which targets enterprise companies. "Our leadership in AI research and infrastructure, and our global product footprint, position us well for the next wave of AI innovation."
Persons: Julian Emanuel, Russell, Emanuel, Evercore, Rubin, Wall, Mark Zuckerberg, Meta, Sundar Pichai Organizations: ISI, Nvidia, Meta
Alphabet announced on Wednesday that Eli Lilly Chief Financial Officer Anat Ashkenazi will be its new CFO after an almost year-long search. Shares of Eli Lilly have soared 90% in the past year and are trading at a record. When she joined Eli Lilly in 2001, she came in through the company's new venture capital division, which was co-founded by her then-spouse Ron Laufer. Fastest growth in decadesFounded in 1876, Eli Lilly has long been one of the major U.S. pharmaceutical companies. But the last couple years have marked a period of historic growth for Eli Lilly due to the exploding popularity of GLP-1s.
Persons: Anat Ashkenazi, Eli Lilly Eli Lilly Alphabet's, Ruth Porat, Eli Lilly, Ashkenazi, it's, Eli Lilly's, David Ricks, Morgan Stanley, Sundar Pichai, Hollie Adams, Ron Laufer, John Smiley, Eli, It's, Trump, Eli Lilly's Covid, we're, Askhenazi, OpenAI's, Larry Page, Sergey Brin, CNBC's Eric Rosenbaum, Toby Lyles Organizations: San, San Francisco Bay Area, Google, Economic, Bloomberg, Getty, CNBC, Tel Aviv University, Hebrew University, U.S . Food, Drug, U.S . Department of Justice, FDA, Reuters, Employees, NBC Locations: U.S, Indiana, San Francisco Bay, Davos, Switzerland, Israel, biopharma, North Carolina, Germany, New Jersey
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