Under U.S. antitrust fire, Alphabet stock drops 6%

November 22, 2024 ndowd

Good morning. Millennials—the overachieving, avocado toast-eating, unluckiest generation in American history-ing demographic of which I am an elder (geriatric?) statesman—are apparently the most optimistic about AI in the workplace.

According to a survey published this week, a majority of millennials said AI improved decision-making, reduced stress, and enhanced creativity at work. Meanwhile just 1 in 5 members of Gen X and Gen Z felt the same. The figures were similar for the belief that AI can boost revenue.

And after living through all those Matrix films, too. I know, I know. —Andrew Nusca

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Under U.S. antitrust fire, Alphabet stock drops 6%

Alphabet and Google CEO Sundar Pichai during a company event in Paris on February 15, 2024. (Photo by Alain Jocard/AFP/Getty Images)

Shares of Google-parent Alphabet plunged Thursday, to about $166, after Justice Department prosecutors outlined proposed antitrust remedies that would significantly alter how the search giant conducts its business.

In September, U.S. District Judge Amit Mehta ruled Google had illegally monopolized the search market with tens of billions of dollars in payments to ensure it remained the default search engine on smartphones and web browsers.

Beyond calling for a stop to those practices, the DOJ also wants to stop Google from making itself the default search option on its line of Pixel smartphones. The agency also called on the judge to force the company to sell its flagship Chrome browser.

In a statement, Alphabet chief legal officer Kent Walker said the proposed remedies would endanger Americans’ security and privacy and chill the company’s investments in artificial intelligence. Hearings begin in 2025; a final ruling is expected by August. —Greg McKenna

Anthropic CEO: The AI regulation math isn’t math-ing

The notion that artificial intelligence is just “math, software, and chips” is misguided, says the CEO of $19 billion AI startup Anthropic.

Speaking at a conference this week, Dario Amodei pushed back on investor Marc Andreessen’s framing of the technology, suggesting that it’s no basis for resisting regulation.

“Isn’t your brain just math? A neuron fires and sums up calculations, that’s math, too,” Amodei said. “Like, we shouldn’t be afraid of Hitler, it’s just math. The whole universe is math.”

Amodei is one of several AI executives who are vocal about the technology’s potential risks and supportive of regulation. Anthropic went so far as to back California’s controversial SB 1047, which Gov. Gavin Newsom ultimately vetoed.

Amodei acknowledged that today’s AI models “are not smart enough” to pose a serious risk. But the AI agents to come? A different story.

“People laugh today when chatbots say something a little unpredictable,” he said. “But we’re gonna have to do a better job of controlling the agents than that.”

The fintech IPOs are coming

The planned IPO of Sweden’s buy-now, pay-later darling Klarna in the first half of 2025 may be an opening salvo for fintech startups itching to go public.

Citing several Wall Street sources, a new Bloomberg report says a successful Klarna listing—plus promises of lighter regulation during a second Trump presidency—could prompt a number of privately funded fintech companies to take their shot at the public markets.

Among those waiting in the wings? Chime (consumer banking) and Zilch (buy now, pay later), which are thinking about listings in 2025; Plaid (infrastructure) and Revolut (consumer banking and trading), which have signaled interest in going public; and Trustly (payments) and Brex (expense management), which are reportedly mulling a move.

The question that will be on investors’ minds? Whether the companies should be valued like fast-growing tech companies or steady-eddie finance firms. All eyes on Klarna.

U.S. agency will treat digital wallet providers more like banks

Is there a point to introducing a new financial technology regulation in the U.S. just before Donald Trump retakes power? The industry will soon find out.

The Consumer Financial Protection Bureau on Thursday finalized a rule that means services like Venmo, Apple Wallet, and Google Pay will get the same kind of deep regulatory scrutiny that traditional banks do.

“Digital payments have gone from novelty to necessity and our oversight must reflect this reality,” said CFPB Director Rohit Chopra, per Reuters. Big Tech obviously isn’t happy.

Legal experts expect Trump to boot Chopra out of his post as soon as he takes power. With the GOP controlling all of Congress, there’s a good chance that the bureau’s powers will be curtailed to some extent—and some of its rules undone. —David Meyer

Google reportedly pulls plug on next Pixel Tablet

Speaking of Alphabet: A flurry of new reports suggest that Google has canceled the development of its next-generation Pixel Tablet over profitability concerns.

The so-called Pixel Tablet 2 was expected in 2025, but that’s no longer the case, according to Android Authority. A Pixel Tablet 3, reportedly planned for 2027, remains in development. (Google did not comment.)

Details about the allegedly canned device suggest Google was tilting its Pixel Tablets toward productivity. WiFi-only and 5G versions were reportedly in the works, as was a keyboard accessory.

As with anything in consumer technology, punting into the future gives the company a chance to put more advanced components inside the device. And, naturally, more AI-powered services on it.