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TechCheck

Google’s Next Challenge 5/2/24

TechCheck

CNBC

Management, Cnbc, Tech, Faang, Investing, Business, Disruptors, Technology

4.566 Ratings

🗓️ 2 May 2024

⏱️ 6 minutes

🧾️ Download transcript

Summary

Closing arguments began today in the landmark antitrust case between the DOJ and Google. But what may ultimately matter more than the ruling is the damage already done to Google's market position, especially around generative AI vulnerabilities and progress. The fear is that under the pressure of regulators, Google has been hesitating or second-guessing itself. And the abundance of chatbots now available to consumers also makes the case, while Google’s Search Generative Experience, or SGE, remains in Beta mode.

Transcript

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0:00.0

The Justice Department's years-long antitrust case against Google, now in closing arguments.

0:05.6

For today's Tech Check, our Deirdreboza is taking a look at what might be next for the Tech Giant.

0:09.6

Morning, D.

0:10.6

Hey, good morning, Carl.

0:11.9

So that actual ruling, which is still weeks potentially months away

0:15.2

could ultimately matter less than the distractions and the caution that the

0:19.5

trial has already imposed on Google think about the antitrust trials of the past.

0:23.7

Microsoft and IBM for example, even though they eventually won, they lost momentum

0:28.2

in their markets. So while Google's share price over the last year has not

0:31.5

reflected investor concerns around

0:33.7

the antitrust battle specifically it has reflected more volatility around the

0:39.0

next battle its gen AI vulnerabilities and its progress.

0:42.9

For example, down 8% on its first

0:44.8

Gen AI demo more than a year ago,

0:47.1

up post last year's I.

0:48.6

Down on Gemini Backlash, up again.

0:51.1

Last week on earnings that suggested ads might be able to live in a

0:54.4

chatbot world after all. Now one of the internal emails released as part of the

0:58.6

DOJ case revealed that Microsoft's chief technology officer was quote very very worried

1:04.3

that they were falling behind Google in Gen AI and that was part of their

1:07.8

motivation to invest that huge billions and billions of dollars investment

1:11.9

into open AI.

...

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