Tech
President Biden And Prime Minister Modi Of India Meet With American And Indian Business Leaders In The East Room Of White House
Google CEO Sundar Pichai and Apple CEO Tim Cook don’t have to be in the same boat (Anna Moneymaker/Getty Images)
Great Expectations

Dear Google, don’t pull an Apple and advertise features you can’t deliver

Google’s developer conference this year made a lot similar promises to Apple’s last year — ones that failed to materialize.

Rani Molla

At Google’s developer conference this week, AI was everywhere and being shoved into everything. Generally analysts were happy with the company’s performance and promises, but what’s ultimately more important is whether Google will actually be able to execute all that AI supposedly “coming soon.”

For a cautionary tale, look no further than Apple, which at its developer conference last year made many similar promises. Then, like now, AI was going to be integrated across apps and its smart assistant Siri was going to become truly smart. The iPhone maker promised the holy grail of UI: having your device correctly anticipate and act on your needs and wants.

The goal was to “make Siri more natural, more contextually relevant, and, of course, personal to you,” Apple AI and machine learning project manager Kelsey Peterson said at the time. The assistant, recreated from the ground up with AI, would be able to pull from your texts and emails and cross-reference real-time flight tracking, for example, to tell her when to pick up her mom from the airport.

The promises went on:

Thanks to Apple Intelligence, [Siri] has awareness of your personal context. With its semantic index of things like photos, calendar events and files, plus information thats stashed in passing messages and emails like hotel bookings, PDFs of concert tickets and links that your friends have shared, Siri will find and understand things it never could before. And with the powerful privacy protections of Apple Intelligence, Siri will use this information to help you get things done without compromising your privacy. Youll be able to ask Siri to find something when you cant remember if it was in an email, a text, or a shared note, like some book recommendations that a friend sent you a while back or for times when youre filling out a form and need to input your drivers license, Siri will be able to find a photo of your license, extract your ID number and type it into the form for you.

One year later, ahead of this year’s Apple developer conference, much of what was advertised hasn’t panned out. Many of the promised features aren’t available and those that are don’t work as promised. Perhaps as a result, Apple Intelligence failed to drive a meaningful iPhone upgrade cycle, Apple is behind its peers in the AI space, and Apple’s head of services, Eddie Cue, has warned, “You may not need an iPhone 10 years from now.”

When the company’s software chief, Craig Federighi, tested the upgraded Siri weeks before its planned release in April, “he was shocked to find that many of the features Apple had been touting — including pulling up a driver’s license number with a voice search — didn’t actually work,” Bloomberg reported recently. The promised Siri upgrades are still “months away from shipping,” and Apple doesn’t plan on discussing them much at this year’s WWDC. Indeed, the company will stop announcing new features more than a few months before their launch.

Let’s look now at Google’s recent promises. Here’s Josh Woodward, VP of Google Labs and Gemini, at the developer conference Tuesday:

Our goal is to make Gemini the most personal, proactive, and powerful AI assistant, and it starts with being personal. What if your AI assistant was truly yours... an assistant that learns you, your preferences, your projects, your world, and you were always in the drivers seat?

He went on, demonstrating a number of features that would certainly be nice to have, but felt a bit like a bridge for sale.

See today, most AI is reactive: you ask, it answers. But what if it could see whats coming and help you prepare even before you ask? Imagine youre a student youve got a big physics exam looming and instead of scrambling, Gemini sees it on your calendar a week out, but it doesnt just remind you. It comes with personalized quizzes crafted from your materials, notes from your professor, even photos, handwritten notes. Thats not just helpful. Its gonna feel like magic.

Yes, of course — if it works. As we learned from Apple, getting this stuff to actually work is a far cry from conjecturing in a demo. Truly useful AI, it turns out, is hard. Apple’s Genmoji, where you use real language to make custom AI emoji, take a long time to generate, usually don’t look that great, and can even overheat your phone. Apple’s text summaries of news were shut down after not just being comical but flat-out wrong. Siri’s upgrades haven’t materialized and the assistant can seem worse than ever.

We’ll check back in this summer when “personal context” is slated to roll out across Google products to see if it’s all it was talked up to be.

More Tech

See all Tech
tech
Jon Keegan

Google’s Gemini 3.0 reportedly due to be released in December

Google is aiming to release the latest version of its flagship AI model, Gemini 3.0, in December, according to a report from Sources.news.

The updated model is expected to make significant gains that should boost it to the top of the leaderboards, according to the report.

The Gemini app also spent some time at the top of the iOS App Store leaderboards, propelled by Google’s Nano Banana image generation model, which proved popular with users looking to turn themselves into action figures. Gemini briefly knocked ChatGPT from the top spot, which is now occupied by OpenAI’s other hot app, Sora.

Recently, there have been signs of ChatGPT downloads slowing, which could provide an opening for Gemini to gain market share. Adding some premium Gemini features to the free tier is a plan under discussion within Google, per Sources.news.

Sources.news also reports that a “small, secretive team” inside Google is working to integrate Gemini into Apple’s operating systems.

The Gemini app also spent some time at the top of the iOS App Store leaderboards, propelled by Google’s Nano Banana image generation model, which proved popular with users looking to turn themselves into action figures. Gemini briefly knocked ChatGPT from the top spot, which is now occupied by OpenAI’s other hot app, Sora.

Recently, there have been signs of ChatGPT downloads slowing, which could provide an opening for Gemini to gain market share. Adding some premium Gemini features to the free tier is a plan under discussion within Google, per Sources.news.

Sources.news also reports that a “small, secretive team” inside Google is working to integrate Gemini into Apple’s operating systems.

tech
Jon Keegan

Meta strikes $30 billion deal with Blue Owl to finance Hyperion data center

Meta’s Hyperion mega data center site in Richland Parish, Louisiana, is currently under construction. The city-sized development will be the home to one of the largest data centers in the world, housing around 2 million pricey GPUs, and will scale up to an eventual 5.5 gigawatts.

So, how is Meta planning to pay for this expensive project?

Bloomberg reports that Meta has signed a deal with asset management company Blue Owl Capital to finance $30 billion to pay for the project, marking what could be the largest private capital deal ever.

According to the report, Blue Owl and Meta would co-own the site, with Meta retaining a 20% stake in the project. PIMCO is also part of the financing for the deal, as the anchor lender.

Raising the massive capital to fund all of these huge AI data center projects is pushing companies to use unusual financing arrangements. The Information reported that xAI made such a deal with Valor Equity Partners worth $20 billion to rent the GPUs needed for its Colossus 2 data center.

Bloomberg reports that Meta has signed a deal with asset management company Blue Owl Capital to finance $30 billion to pay for the project, marking what could be the largest private capital deal ever.

According to the report, Blue Owl and Meta would co-own the site, with Meta retaining a 20% stake in the project. PIMCO is also part of the financing for the deal, as the anchor lender.

Raising the massive capital to fund all of these huge AI data center projects is pushing companies to use unusual financing arrangements. The Information reported that xAI made such a deal with Valor Equity Partners worth $20 billion to rent the GPUs needed for its Colossus 2 data center.

tech
Rani Molla

EssilorLuxottica surges to record high after saying Ray-Ban Meta glasses helped boost revenue growth

European eyewear company EssilorLuxottica said during its earnings call yesterday that its Ray-Ban Meta glasses helped boost its revenue growth, something that’s sent the ADR up to a record high.

“Clearly, there is a lift coming from Ray-Ban Meta wearables as a product category,” the company’s CFO, Stefano Grassi, said on the call Thursday. “The contribution from Ray-Ban Meta in wearables, as I mentioned before, is in excess of 4 percentage points overall for the group.”

EssilorLuxottica’s revenue was up 11.7% in the third quarter compared with a year ago.

Meta has a nearly 3% stake in the eyewear company, which it has partnered with on the smart glasses. Meta CEO Mark Zuckerberg has also claimed that its Ray-Ban Metas are a hit, saying that the “sales trajectory that we’ve seen is similar to some of the most popular consumer electronics of all time.” We looked at the numbers and aren’t so sure.

44%

JPMorgan economists estimate that the basket of stocks they use as a rough gauge of AI’s market impact is now worth about 44% of the S&P 500’s total market cap, up from 26% in 2022.

Using a basket of 30 AI stocks picked by the bank’s equity analysts as a barometer of AI, the economists find that American households have seen their aggregate wealth go up by about $5 trillion over the last year as a result of AI, they reported in a note published Thursday.

They also estimate the surge in stock market wealth could raise annualized US consumer spending by some $180 billion, due to wealth effects.

JPM acknowledges some uncertainty around this estimate, noting that the spending impact could be lower “if the wealth gains are accruing disproportionately to upper income households with lower [marginal propensity to spend].”

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.