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In today’s newsletter, we talk with Google CEO Sundar Pichai about the tech giant’s new AI products ͏‌  ͏‌  ͏‌  ͏‌  ͏‌  ͏‌ 
 
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December 13, 2024
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Reed Albergotti
Reed Albergotti

Hi, and welcome back to Semafor Tech.

We have an exclusive interview with Sundar Pichai in a big week for Google, which included Nobel prizes, a quantum breakthrough and Gemini 2.0, a big leap forward for the company’s flagship AI model.

Pichai has spent much of the last two years being asked tough questions. How will the search business survive generative AI? Why did OpenAI get the first-mover advantage with ChatGPT? Why are Google’s AI models hallucinating?

Through all of it, the company’s stock price has ticked upward while Pichai rearranged its AI team to meet the generative AI moment, as he calls it. It was an interesting time to talk to him because the week’s success was due to a mixture of medium- to long-term strategies, and the CEO was ready to reflect on it.

The knock on Pichai through all of this is that he might have been a great CEO when Google was just coasting along, but he’s the wrong CEO for Google when facing the biggest existential threat in its history.

I think that argument misses the mark for two reasons. First, this week illustrated that Google is actually well positioned to win the AI race. (It’s still pretty early. This is a long-term battle and anything could happen.) Second, the company was transforming under his leadership to tackle this exact challenge.

We have long known about his strategic thinking in shorter-term projects. It was his idea to build a web browser, for instance. Chrome turned out to be one of the company’s most successful products outside of Search. And he deftly helmed Android.

Now, after nearly 10 years at the helm, we’re getting a better sense of how his long-term initiatives are panning out.

On another note, in Wednesday’s newsletter, I incorrectly wrote that GM shut down Cruise, its robotaxi project. The company shut down robotaxi development at Cruise. Apologies for the error.

Move Fast/Break Things
Jeff Bezos at the Unveiling of Blue Origin’s Lunar Lander in Washington, DC in 2019.
Daniel Oberhaus/Wikimedia Commons

➚ MOVE FAST: Bait. Amazon is the latest Big Tech company to woo Donald Trump with a planned $1 million donation to his inauguration, following Meta. And Jeff Bezos is visiting the president-elect at Mar-a-Lago. Mark Zuckerberg and Sundar Pichai also traveled to Trump’s residence recently, and OpenAI’s Sam Altman is reportedly joining the donation wagon as well.

➘ BREAK THINGS: Switch. Activist investor Starboard wants bitcoin-mining firm Riot to turn its compute-rich facilities into data centers, The Wall Street Journal reported. While cryptocurrencies have rallied since Trump’s win, the demand for power and space to fuel the AI boom is more compelling for investors.

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Artificial Flavor
Kevin Weil, Jackie Shannon, Michelle Qin, and Rowan Zellers introduce and demo the new Santa voice in ChatGPT, as well as video and screensharing in Advanced Voice, in a YouTube video
OpenAI/YouTube

OpenAI had a fun update to its ChatGPT app on Thursday: Santa mode. Just open up the app, tap on the voice icon, hit the little snowflake in the corner and you can chat with Santa. Of course, this also means that some grinch will certainly jailbreak Santa, so let’s all brace ourselves.

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Reed Albergotti

Google CEO talks about the future of AI, Waymo and quantum computing

A graphic with an image of Sundar Pichai
Al Lucca/Semafor

THE SCOOP

In an exclusive interview, Alphabet and Google CEO Sundar Pichai told Semafor he’s ready to work on a “Manhattan Project” for AI when Donald Trump moves into the White House next year.

“I think there is a chance for us to work as a country together,” he told Semafor earlier this week. “These big, physical infrastructure projects to accelerate progress is something we would be very excited by.”

On the Pichai mood meter, the cerebral boss known for his zen-like calm was downright giddy at the company’s Mountain View campus Wednesday afternoon after a day of major product announcements, which followed a big breakthrough in quantum computing and Nobel prizes awarded for work done within Google. He was set to leave the next day to see President-elect Donald Trump, The Information reported and Semafor confirmed.

The head of the $2.4 trillion company seemed to be enjoying a moment of relief after a few years of intense pressure that followed the launch of ChatGPT in 2022. Less than a year ago, the conventional wisdom was that Pichai may not last long in his role. On Wednesday, he told me he never had any doubt about the company’s direction.

“Internally, I had a palpable sense of the progress we were making,” he said. “It’s definitely very satisfying to see the momentum, but we plan to do a lot more. We’re just getting started.”

At the core of that innovation is Gemini, the company’s flagship frontier AI model. Google took a different approach from competitors, putting its research energy and chops into building a “multi-modal” model from the ground up instead of a text-based large language model.

When Gemini launched a year ago, it didn’t stack up well against competitors in some key benchmarks, like coding. But Gemini 2.0, which came out Wednesday, seems to have leapfrogged ahead of Anthropic into the lead of SWE-Bench, a key indicator of AI capabilities.

The metric shows Google is on the right track. And for Pichai, that goes back to decisions he made almost a decade ago when he became CEO of the search giant.

“In 2015, I set the company in this AI-first direction. As part of that, we said we would do a deep, full-stack approach to AI, all the way from world class research, building the infrastructure … all the way from silicon on,” he said. “That’s the foundation.”

Read more about why Pichai’s strategy with Google DeepMind seems to be working, and catch up on the full exclusive Q&A here. →

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Semafor Stat
15

The number of companies, including Character.AI, Discord, and Instagram, being investigated by Texas over their child privacy and safety practices, the state’s attorney general announced Thursday. Safety concerns are heating up as companies develop new AI technologies. Character.AI is facing a lawsuit in Florida on allegations that its chatbot influenced a 14-year-old boy to take his life.

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What We’re Tracking

Japan’s booming IPO market is welcoming a semiconductor darling next week, but investors may have reason for pause. Memory-chip maker Kioxia will list on the Tokyo Stock Exchange at a valuation of around $5.1 billion, a fraction of its $18 billion worth in 2018 when it spun off from Toshiba, and down from a $16 billion planned IPO that flopped in 2020. It’s not as well positioned as rivals to take advantage of the AI revolution. Meanwhile, the market caps of competitors Samsung, SK Hynix, and Western Digital roughly match or exceed their valuations during the same time period. Kioxia’s significant debt and diminishing market share are largely to blame, The Wall Street Journal reports. But it’s not all doom and gloom. The company has seen growth in recent quarters and believes the AI boom will nearly triple demand by 2028 for the kind of memory storage it makes.

A chart showing the market share of different companies in the NAND flash memory industry

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Semafor Spotlight
A graphic saying “A great read from Semafor Principals”Joe Manchin speaking at a Semafor event.
Kristoffer Tripplaar/Semafor

Retiring Sen. Joe Manchin is staying true to himself until the very end of his term, stopping a key nominee this week and pushing a key priority in the spending bill.

In a reflective exit interview with Semafor’s Burgess Everett, the senator also said he was close to running for president.

“If we had a pathway forward to get on 50 ballots, oh, I’d have been a go,” he told Burgess.

For more scoops and analysis from the Hill, subscribe to Semafor’s daily Principals newsletter. →

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