Google

A potential court ruling threatens Google’s $26 billion default search agreements, with Apple receiving $20 billion annually. The Apple-Google alliance has shaped the internet, but is now under antitrust scrutiny. While Google faces potential traffic loss, Apple could suffer a greater financial impact. The ruling’s effect hinges on Apple’s ability to secure new deals. Some analysts believe Google might benefit long-term, freed from costly contracts as AI becomes more integral to search. The DOJ advocates for limiting exclusive AI distribution agreements, possibly reshaping the competitive landscape.

AI search adoption is surging, with Google integrating AI Overviews, yet Google’s ad revenue surprisingly increased by 14%. This is because Google embeds ads within AI responses, potentially undermining the purpose of AI search – avoiding ads. While websites in AI results gain traffic, overall click-through rates to content websites decrease. Google defends against claims of declining traffic. The long-term impact includes a potential decline in high-quality content and increasing margin of error as AI uses AI-generated content for learning, and possible antitrust conflicts.

Rumors circulated online suggesting Google would resume full services in mainland China on September 1st. However, Google’s official Weibo account quickly denied these claims, stating the information was “not true.” Google withdrew its search services from mainland China in 2010 but maintains a presence with offices and an AI research center. In February 2025, China’s SAMR launched an anti-monopoly investigation into Google, potentially focusing on the Android ecosystem.

OpenAI is diversifying its AI infrastructure by utilizing Google’s TPUs alongside NVIDIA GPUs, as part of its drive for computational power, including for ChatGPT. This move, motivated by cost management and infrastructure diversification, could boost the profile of Google’s TPUs as an alternative to NVIDIA’s GPUs. The partnership, however, shows competitive dynamics, with Google limiting access to its most powerful TPUs.

An EU court advisor backed a €4.12 billion fine against Google for abusing its Android market dominance, stemming from unfair practices with its search engine and pre-installation agreements. The advisor dismissed Google’s appeal, arguing its behavior unfairly benefited it. This recommendation carries significant weight. Google expressed disappointment, citing potential negative impacts on investment and users if the court adopts the recommendation. The final ruling is expected soon.

Google is offering voluntary separation packages to employees across various departments, including knowledge and information, engineering, and marketing. This follows significant layoffs in 2023 and earlier voluntary separation offers to Android and Pixel hardware teams. The buyouts aim to reduce headcount and address employee anxieties about continued restructuring, despite Google’s financial health.

CNBC AI News (May 18, 2025) reports on Google CEO Sundar Pichai’s candid podcast reflections, emphasizing his pride in Google’s unique ability to bridge groundbreaking research with real-world applications that drive Alphabet’s growth. While acknowledging strategic non-decisions as key regrets, Pichai revealed intense internal discussions about acquiring Netflix in 2015—a move that could have reshaped streaming’s evolution. Despite hypothetical advantages of Alphabet’s advertising resources accelerating Netflix’s expansion, Pichai expressed no current buyer’s remorse, highlighting how even major tech players recognize strategic restraint’s impact alongside innovation achievements.