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TechCheck

Google’s Reorganization Puts AI In Front 10/18/24

TechCheck

CNBC

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

4.856 Ratings

🗓️ 18 October 2024

⏱️ 7 minutes

🧾️ Download transcript

Summary

Google shares fell on news of an AI reorganization, announcing it’s moving the Gemini Apps team under DeepMind and shifting a search and ads executive to a Chief Technologist role. But investors might be missing the bigger picture – instead of viewing it as an example that Google is increasingly willing to sacrifice some of its search advantages for an edge in AI.

Transcript

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0:00.0

Google making some big moves this week with some of its top talent,

0:02.6

consolidating AI teams, repositioning a leading search and ad

0:06.9

executive for today's tech check.

0:08.5

Dear Dubosas looking at how those moves might signal a change in

0:11.9

Google's priorities.

0:13.0

Hey, D.

0:15.0

Hey, good morning, Carl.

0:15.9

So the initial reaction from the market

0:18.1

was like Google shares fell on that news,

0:20.8

but investors might be missing the bigger picture here.

0:24.4

Jitters, yes, the Prabaca Ragavan is leaving search.

0:27.4

That's still Google's profit engine.

0:29.2

But his new role as chief technologist, he's going to be working directly with CEO

0:33.2

Sandra Pachai who has made it clear that AI is the most important endeavor at the

0:37.9

company. Moving Rogovin away may be an example that Google is increasingly

0:41.8

willing to sacrifice some of its search resources and

0:45.4

talent for an edge in AI.

0:48.0

Now the rear yesterday also further elevated Demas Hasabas, an academic that is credited with some of the most important

0:54.3

breakthroughs in AI over the last decade, and of course he just won the Nobel Prize for chemistry.

0:59.8

Earlier this year, Pichai doubled down to Hasabas by selecting him to lead all of Google's

1:05.0

AI efforts over a long-time Google Executive.

1:08.1

Yesterday, he further consolidated power under Hasabas by putting the Gemini app team under his purview.

...

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