Welcome back to the Exchange. Google's annual developer conference is
underway in Mountain View.
CEO Sundar Pichai giving the keynote right now.
Deirdre Bosa is outside with the big headline so far.
Deirdre.
Yeah, that's right. We can hear the cheers coming from
inside the Amphitheatre.
Right beside me. Sundar Pichai,
as you said, took the stage.
He's still on there right now and I think probably
the biggest announcement so far.
We're still early. Sundar Pichai said that the company is
launching AI overviews in search across the US this week.
Kelly, you and I have talked about this.
This is previously known as search generative experience.
So this is search with AI Generative AI added to
it.
So it's no longer the 10 blue links that you
typically see from a traditional search,
but they're actually incorporating AI to all users in America.
So search is going to look very different for everyone
in the US by the end of this week.
And he says that they're going to roll that out
to more countries throughout the year.
Another headline that came out,
he said that over a million people have signed up
to try Gemini over the last three months.
Gemini is it's more pure form chat bot like a
GPT for like a perplexity,
more of an answer machine.
And I just want to note that
1,000,000 people in three months,
compare that to what we saw from ChatGPT within two
months of launch back in
2022, they made it to 100 million monthly active users.
So again, you see that Google is moving slowly,
but they do have that huge distribution,
that huge scale advantage and likely kicking off a new
kind of race here if they're making generative AI available
right in search.
Starting this week, we're getting some more demos as well,
including workspace. He just introduced the idea of AI agents.
That's what we saw from ChatGPT that kind of front
ran IO yesterday.
The idea that we're moving out of this era of
chat bots into an era of AI agents that can
emote,
that can reason, that can have a back and forth
conversation.
So Kelly, I'm going to tune back in.
We see the head of AI,
Demis Hassabis, taking the stage right now to find out
more about what
Google's AI agent is going to look like.
Dear Jeff, I could just steal two more seconds.
And thank you first of all for pointing out the
SGE thing,
which now, as you said,
they're calling AI overview. Got it.
But you also asked a very good question the other
day when we were because I said I liked it
as a user experience.
But you said how many ads am I seeing?
The answer was not many.
How big of a of a problem is that?
Or how much more could the user experience change if
Google has to integrate more ads?
So I think that is still an open question and
that's why Google is not rolling out Gemini to everyone,
because Gemini doesn't really have ads.
It's that AI overview or SGE where executives have said
that they can place ads above and below those generative
AI answers.
And I think it's still unclear where that's going to
go.
If that's going to go now below the fold,
how does the business model change with that?
That's why maybe you know they put Gemini behind another
wall.
1,000,000 users have signed up versus 100 million monthly active
users for ChatGPT within two months.
There's a difference there and can
Google when using its strategy by keeping the ad model
within a generative AI world.
Right. And you think about well could people just pay
to be kind of the sponsored answer or kind of
point you.
But then it compromises the quality which is kind of
their whole stuff is useful exactly.
I can't wait to see how they try to see
this.
May not even be this may not even be a
this may be backwards looking,
because what we're seeing right now are voice agents.
We're not typing anything in.
So true. We're not gonna see the links anywhere.
We're going to hear a chat bot answer us.
That's where we're moving. Raises more questions about that model.
Excellent.