'Stakes are high': Pichai urges employees to prepare for 2025
What's the story
Amid intensifying competition and regulatory headwinds, Google CEO Sundar Pichai has highlighted the significance of 2025 for the tech giant. Speaking at a strategy meeting, Pichai stressed the need for speed and focus in harnessing technological advancements, especially in artificial intelligence (AI), audio obtained by CNBC revealed. "I think it's really important we internalize the urgency of this moment, and need to move faster as a company. The stakes are high. These are disruptive moments," he said.
Regulatory hurdles
Pichai acknowledges global scrutiny and internal challenges
Pichai admitted the intense pressure Google has been under in the last year, from growing competition in core markets, internal cultural clashes, and skepticism over his future vision for the company. He also acknowledged the increased regulatory scrutiny Google is facing around the world. "It's not lost on me that we are facing scrutiny across the world. It comes with our size and success. So .... we have to make sure we don't get distracted," Pichai said during the meeting.
Struggles
Regulatory troubles for the tech giant
In August, a federal judge ruled that Google unlawfully maintains a monopoly in the search market. By November, the Justice Department had called for Google to divest its Chrome internet browser unit. In another case, the DOJ accused Google of illegally monopolizing online ad technology. That trial concluded in September and is awaiting a ruling. Meanwhile, in September, UK's competition watchdog issued a statement of objections against Google's ad tech practices, provisionally finding them harmful to competition in the region.
AI competition
Google's AI model Gemini to counter new competitors
Despite dominating the search business, Google is now facing new challenges from generative AI technologies that provide innovative ways to access information online. These advancements have brought new competitors like OpenAI's ChatGPT and Perplexity into the mix. To stay ahead, Google is heavily investing in its own AI model, Gemini. Pichai identified "building big, new business" as a top priority for the company.
AI strategy
Pichai projects Gemini app as Google's next big hit
Pichai sounded optimistic about the Gemini app, which he thinks could be Google's next product to hit half a billion users. "With the Gemini app, there is strong momentum, particularly over the last few months," Pichai said. "But we have some work to do in 2025 to close the gap and establish a leadership position there as well." He later added scaling Gemini on the consumer side will be their biggest focus next year.