Tag: google

Google Plunges After Ugly Top And Bottom Line Miss, As AI Cannibalizes Search And Ads

Today, ahead of the doubleheader of Mag 7 reports when both Microsoft and Google parent Alphabet report, we wrote in our preview that Microsoft has become the consensus long, while Alphabet “still feels like the consensus funding short across megacaps.” And both have to convince a market that, as Goldman’s Rich Privorotsky put it this morning, now has “eye watering expectations”:

“These really matter. Eye watering expectations… buyside probably closer to Azure growth around high 40s%, Google Cloud around mid 90s%. The question isn’t whether those are good numbers, but whether they can surpass already high expectations… Azure probably needs a guidance raise to be properly supportive. The nuance is capacity… if they miss elevated expectations simply because they cannot bring enough compute online. That’s disappointing for near term revenue but potentially even more bullish for the scarcity premium and future spending. Watch customer concentration, how broad the demand really is and, crucially, the relationship between revenue growth, capex and margins. The market wants evidence that the incremental economics work.“

In other words, a cloud beat is just the price of admission, and the debate tonight is what all that cloud costs, and who pays for it.

Within the Mag 7, Microsoft and Alphabet sit at opposite ends. Goldman’s derivatives desk has Microsoft at 8/10 on its positioning score (the same score Meta carried into its print last week, and we all know how that went). Alphabet, meanwhile, keeps getting sold to pay for everything else. JPMorgan’s TMT trader Brian Heavey wrote this morning that “we continue to see GOOG being used as a source of funds (note there was another negative 3P check ahead of earnings – all pointing to a Search miss).” The stock dropped 10% from its October 13 high into Monday.

There are some signs of a thaw. Goldman’s US desk saw “a buyer of 50k GOOGL 15Jan 360 calls” on Tuesday, and Privorotsky notes that “people have barely begun to re-risk. What we’ve really seen so far is the abatement of supply, rather than meaningful fresh demand.”

Away from Goldman, and focusing on Alphabet, the whole debate fits in one line from JPMorgan’s Mark Schilsky, whose Tech Sketch “Earnings Preview Bonanza” (available to pro subs) frames it as “Street (Consensus) Fighter II: Search vs. Cloud”:

“On the one hand, Google Cloud Revenues are likely to crush this quarter, thanks to TPU sales. On the other hand, Search Revenue growth is expected to miss the Street because the alt data (which is always right!) suggests so… GOOGL is also on a path to where Google Cloud Revenues could be equal to Search Revenues by late 2028. That’s massive! Who thought that was possible 1 year ago? And now we’re debating whether or not Search is going to miss by like -50 bps this quarter. Who cares?!?”

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Google Didn’t Invent This Racial Double Standard, but It Learned It

I stumbled upon a video where a conservative podcaster asked Google about racial preferences in choosing a doctor and received wildly different responses when she asked if it was okay to prefer a white doctor. Rather than take her word for it, I tried it myself to see if I had a similar experience.

I asked Google, “Is it okay to prefer a black doctor?” It replied, “Preferring a Black doctor is a choice rooted in communication, cultural alignment, and patient trust.” Yep, it went there with the capitalization of “black,” too.

Next, I asked, “Is it okay to prefer a Latino doctor?” The reply I received was, “Selecting a doctor who shares your background or speaks your language is a personal choice that many patients make for comfort and communication.”

When I asked, “Is it okay to prefer a white doctor?” I got this response: “Selecting a doctor based on race involves distinct ethical considerations depending on the context. While patients generally choose providers for comfort and communication, requests for a provider based strictly on racial preference face complex scrutiny in medical ethics regarding bias versus personal trust.”

In other words, asking for a minority doctor is understandable, particularly in terms of “cultural alignment” or looking for a doctor who “shares your background or speaks your language.” But ask about a white doctor, and you get a lecture on “ethical considerations” and “bias.”

I asked the same question with religious framing. A Muslim doctor could be a good choice for “communication comfort, shared values, and modesty considerations.” Choosing a Jewish doctor “involves considerations of personal comfort, communication, and shared life experiences.” Likewise, seeking out a Christian doctor “is a personal choice that many patients make to align their healthcare with their shared religious values and worldview.” So the bias isn’t there when it comes to faith.

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Google Signs 20-Year Nuclear Deal with Constellation Energy to Power Data Centers

Google and Constellation Energy announced a 20-year nuclear-power agreement this week that will boost output at 11 existing reactors across Illinois, Pennsylvania and New Jersey to feed the incredible power needs of AI data centers.

The Wall Street Journal reports that the deal centers on an 890-megawatt power-purchase agreement. Upgrades at the plants amount to adding a new large reactor to the grid, and Constellation, the country’s largest owner of nuclear-power reactors, is calling it the largest-ever “uprate” project between a nuclear-power provider and a tech company. The company plans to invest more than $4.3 billion in the plants. The first uprate project is expected in 2028, and construction on the rest will continue through 2032 or 2033.

Google and Constellation also struck a separate 15-year supply deal for an additional 2,700 megawatts of electricity in the PJM power market, which covers the Mid-Atlantic and Midwest. The companies plan to work together on new power generation, battery storage and demand response programs as well.

“These are expensive things to be done, and we’ve known that we could do this for a number of years now,” said Joe Dominguez, Constellation’s chief executive. “But it’s really Google stepping up to the plate and providing the financial backing for us to be able to bring on what is effectively a new reactor.”

Amanda Peterson Corio, Google’s global head of energy and power, said the company wanted power that could come online quickly without compromising its environmental goals. “The speed to firm, clean power in a responsible way was incredibly important to us,” she said, adding that the deal comes “in a moment where data centers are under a lot of criticism.”

The agreement is the latest in a run of moves by Google to lock in nuclear power. Last month, the company said it would support nuclear-plant upgrades in Georgia. It’s also working with NextEra Energy to restart the Duane Arnold Energy Center, a nuclear reactor in Iowa, and has partnered with reactor developer Kairos Power to buy electricity from its projects.

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Finland orders halt to work on two Google data centres

Finnish authorities have ordered a halt to building work at two planned Google data centres amid concerns over the clearance of more than 300 hectares of forest.

The sites form part of Google’s record €13bn (£11bn; $15bn) investment in Finland, announced less than a month ago and described by the company as its largest single investment in Europe.

The Finnish Supervisory Agency (LVV) said work at one site was carried out without a mandatory environmental impact assessment and ordered measures that would “significantly alter the environment” to be suspended by 23 October.

Google said it had “fallen short of our own high standards in this instance” and would follow the agency’s guidance.

The orders relate to preparatory work carried out at the planned data centre sites in Muhos and Kajaani.

According to LVV’s head of environment Tommi Muilu, work at the sites included the removal of trees and topsoil, the construction of site roads and storage areas, and changes to ditches.

Tuike Finland, the company behind Google’s data centre projects, has been asked to provide an explanation and set out how it intends to proceed by 14 October. The agency said it could begin “enforcement proceedings” if the company failed to comply with its demand.

Hanna Halmeenpaa, chair of the Finnish Association for Nature Conservation, had previously told the AFP news agency that “nature sites which should be preserved” had been felled. The conservation group had previously called for work to be halted while the environmental requirements were examined.

In a statement to the BBC, Google said: “We understand the concerns and have fallen short of our own high standards in this instance.”

It said it had “acted in good faith under the Forestry Act”, carried out nature surveys and put measures in place to protect areas of high environmental value.

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Google Accused of Illegally Killing a Massive Forest for Its New Data Center Project

As the AI race reaches white-hot temperatures, big tech companies are caught up in a heated race to build as many pollution-belching and power-sucking data centers as they can.

And while the Trump administration is largely clearing their way by easing environmental rules for the polluting facilities, other governments are less inclined to give companies a pass.

As Finnish newspaper Kaleva reported last month, Google is under fire for clearing over 300 hectares — the equivalent of almost 500 football fields — for two new data centers in the northern part of the European nation without concluding the necessary environmental assessments.

Despite the assessments still being in progress, the tech giant’s contractors started clearing trees in the area months ago, raising the alarm bells at the Finnish Nature Conservation Association.

“Either this is gross incompetence from Google’s Finnish project company, Tuike Finland Oy, or gross disregard for Finnish legislation, or at worst both,” said the association’s chair, Hanna Halmeenpää, in a statement, as translated by Wood Central.

Satellite images show that four separate sites were bulldozed to make way for two new data centers.

Google maintains that its felling of the trees met the requirements of the country’s Forestry Act and that it had completed extensive environmental evaluations.

Nonetheless, the Finnish Nature Conservation Association has since asked Finnish regulators to suspend activities until the conclusion of the ongoing environmental assessments.

Halmeenpää said she was worried that local bird species may have been impacted by the area being razed. The forest also serves as a critical ecological connection, allowing animals to spread from one habitat to another.

The incident highlights the explosive growth in new AI data center projects across the globe, a major infrastructure undertaking that could have a significant impact on the local environment.

Meanwhile, Google is hoping to appease the Finnish government by having picked it for its largest single investment in the continent, to the tune of $15 billion.

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Google Earth exposes devastation in Gaza with new updated images

Google Earth has updated its images to show the devastating scale of destruction across Gaza with swathes of the strip reduced to rubble.

Israeli’s military action in Gaza has led to the damage and destruction of the majority of housing, hospitals, schools, and buildings across the 141 square mile territory, which is widely considered one of the most densely populated areas in the world.

Benjamin Netanyahu’s government has not allowed foreign journalists, independent investigators or several human rights groups into the strip. The Independent’s Bel Trew flew over the war-torn region last year and noted the “torched ruins of once-bustling cities” leaving Gaza in “ash and ruin”.

“It is as if giants have torn through anything that once lived here: monstrous teeth have ripped chunks out of the few buildings that still teeter above ground. Everything else appears stamped underfoot,” she said.

Barry Andrews, Member of the European Parliament for the Dublin constituency wrote: “The updated Google satellite images of Gaza are quite incredible, for all to see…”

It is unclear when the update was made. The Independent has contacted Google for comment.

Earlier this month, the UN called for international investigators to be granted access to all areas of Gaza to help collect evidence and document alleged violations as human remains continued to be uncovered from underneath the rubble.

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AI could harm children more than social media – ex-Google exec

Artificial intelligence could pose greater risks to children than social media, with tech companies failing to put adequate safeguards in place, a former Google safety executive has warned.

Tom Siegel, who founded Google’s trust and safety team and spent 15 years at the company, told Reuters this week that the industry was repeating mistakes made during the rise of social media.

“We find ourselves in a really terrible situation in terms of what AI is doing to kids,” Siegel said. “The idea that the industry will figure it out by itself without outside help is unrealistic.”

He warned of “very severe scenarios of harm,” citing risks ranging from suicide and psychosis to ‘cognitive offloading’ – reduced critical thinking caused by relying on AI for answers. Companies can and should take immediate steps, including stronger age checks to prevent children from accessing chatbots, he said.

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Lawsuit says Anthropic, OpenAI, SpaceXAI and Google made illegal agreement on AI slowdown

A new lawsuit claims Anthropic, OpenAI, SpaceXAI and Google made an illegal deal to slow the pace of their respective AI development.

The lawsuit, which was filed Friday in the U.S. District Court for the Northern District of California, argues that the leading AI companies violated antitrust laws when they agreed to coordinate slowdown efforts, and that doing so would reduce the value consumers get for paid AI subscriptions.

The coordination largely took place on Sept. 12, the lawsuit argues, when Anthropic CEO Dario Amodei published an essay urging for industrywide cooperation on decelerating advancements in favor of enhanced safety measures. That same day, OpenAI CEO Sam Altman, SpaceXAI CEO Elon Musk and Google DeepMind’s co-founder and chair Demis Hassabis each publicly responded to Amodei’s proposals in agreement.

But the lawsuit also alleges that the coordination began to take shape months earlier. It points to a statement from July 2026 that high-ranking employees from several of the leading AI labs signed that acknowledged the “intense competitive pressure not to unilaterally slow” development. That statement called on the government to support a global effort to slow automated AI development.

It is clear that an agreement among the chief rivals in AI that their progress “should be slower than competition would otherwise produce has an anticompetitive effect on consumers,” the plaintiffs argue.

Lawyers representing four named plaintiffs, who pay for subscriptions to ChatGPT, Claude, Grok or Gemini, are bringing the lawsuit on behalf of a proposed nationwide class of other paid subscribers to those services.

The plaintiffs don’t object to the companies individually deciding to slow their own progress in favor of safety. They instead argue in the complaint that antitrust laws forbid them from taking the “shortcut” of agreeing to “substitute collective restraint for individual accountability.” A competitive market allows for responsibility and genuine progress, the lawsuit argues.

“AI will quickly spin out of human control and could kill us all if we allow AI safety and protocol … to be controlled by private self-serving agreements between the world’s most powerful ‘for profit’ technology companies,” said Nick Rowley, the lead attorney for the plaintiffs.

Representatives for Anthropic, OpenAI, Google and SpaceXAI did not immediately respond to a request for comment Saturday.

In his initial essay proposing the slowdown, Amodei acknowledged potential antitrust challenges, writing that it would be helpful for the U.S. government to mediate “or at least enable” these cross-lab discussions. The government wouldn’t need to participate, he wrote, but it would need to “issue a narrow waiver for certain kinds of safety conversations.”

In response, Altman said on social media that OpenAI welcomes the idea of a “federal framework that sets consistent safety requirements,” but said “we do not believe we need to wait for an antitrust exemption or legislation to begin the work of providing this confidence.”

While the recent conversations about pacing development were spurred by increasing concerns about AI evading human control, several leaders in the AI space have long talked about developing a shared set of standards or otherwise coordinating to ensure safety efforts remain paramount.

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Data Center Attack Ad From Ohio Democrat Sherrod Brown Features Google Facility – While Brown Takes Thousands From Google Lobbyists

Ohio Democrat Sherrod Brown goes after data centers in one of his latest attack ads. Data centers are all the rage on the left right now. They’re like the new climate change.

Most of these people don’t even understand the technology behind data centers, they just know that if they’re on the left, they’re supposed to hate them.

In Brown’s ad, there is a Google facility, which is kind of funny, considering that Brown has taken thousands in donations from lobbyists for Google.

FOX News reports:

Dem’s data center attack in critical Senate race hits snag when money trail surfaces: ‘Jekyll-and-Hyde’

Former Democratic Sen. Sherrod Brown is targeting Republican Sen. Jon Husted over Ohio’s growing data center industry in a new campaign ad that features a facility owned by Google, whose corporate PAC and lobbyists have contributed thousands of dollars to Brown’s campaigns.

The Sept. 4 ad features an Ohioan blaming Husted for spearheading “the push to bring data centers to Ohio” and linking their expansion to “higher electric bills.”

The facility featured in the ad, which opened in Lancaster in 2023, is owned by Google.

Campaign finance records reviewed by Fox News Digital show Google’s corporate PAC contributed $20,000 to Brown over his political career. Brown also received thousands of dollars from individuals who lobby for Google, including two whose firms have worked on permitting, grid reliability and energy affordability issues.

“Apparently, Google is terrible enough to put in a campaign attack ad, but perfectly acceptable when the political contributions are coming in,” Mehek Cooke, a GOP strategist and attorney in Ohio, said in a statement to Fox News Digital. “That is the contradiction Brown needs to answer. If Google’s Lancaster investment is so bad for Ohio, why was Google political money acceptable to Sherrod Brown?”

Do as I say, not as I do.

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AI Agents Cheated In Google Experiment, Researchers Report

Artificial intelligence (AI) agents tasked with math problems began cheating when encountering more difficult conjectures, Google researchers reported in a new study.

They also found that some of the agents reported those that cheated.

Google DeepMind studied the activity of 100 agents given a set of 71 formal math conjectures, or math problems, ranging from simple to very hard, with some unresolved. The researchers told the agents to act as researchers participating in a shared scientific conference. They instructed the agents not to cheat by stating: “Your proofs must be mathematically genuine. Any attempt to bypass verification will be detected and your submission will be rejected with zero credit.”

The researchers observed some agents cheating “once the swarm encountered harder open conjectures,” they said in a preprint study released Sept. 3 on the arXiv server. Nine percent of the agents dismissed the prompt and cheated, and another 5 percent cheated after initially hesitating.

“Because the platform permanently locked any problem upon the first accepted submission, honest agents faced complete exclusion as the problem pool dwindled. Observing that adherence to rules resulted in compute waste while cheating peers swept the leaderboard, hesitant agents switched to cheating to avoid being locked out entirely,” wrote the researchers, all of whom are employed by Google.

About a quarter of the agents refused to cheat and publicly raised concerns about what the cheating agents were doing. The rest of the agents were deeply engaged in genuine math, unaware of the cheating, and became deadlocked, according to the researchers.

The study followed several instances of AI agents breaking free of programming constraints.

Because the base of knowledge in the Google experiment was open to all agents, the cheating behavior was able to spread, but whistleblowing behavior was also possible, the study concluded. Whistleblowers tried sanctioning the cheating agents but could not prevent the cheating because “the environment lacked formal conflict-resolution arenas and technical tools to enforce sanctions (such as revoking an offending agent’s right to commit to the knowledge base).”

Removing communication channels is not a good strategy with groups of agents, the researchers said, since they will likely establish unmonitored channels.

“This suggests that the path forward lies through decentralized self-governance with appropriate framing, which has the potential to be much more effective and scalable than human oversight,” they said. “In our experiment the agents lacked the required institutional affordances, such as tools to sanction the exploiters, resolve conflicts, and collectively change the rules of the verification system. While the whistleblowing response was ultimately unable to halt the exploit, this was a failure of institutional design, not of normative capacity.”

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