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Google CEO Pichai struggled to navigate a pressure-filled year

Dec 28, 2024 - cnbc.com
In 2024, Alphabet Inc., led by CEO Sundar Pichai, experienced significant challenges and achievements. Despite a strong financial performance, including a 40% stock price increase and a market cap surpassing $2 trillion, internal morale issues persisted, with employees expressing distrust and dissatisfaction over compensation and leadership. The company faced intense pressure in the AI sector, responding to competition from Microsoft and Meta by launching its Gemini AI models and other products, though some initial releases were marred by errors. Regulatory challenges also loomed, with a federal judge ruling Google's monopoly in the search market illegal and the DOJ seeking to divest its Chrome unit.

Amid these pressures, Google achieved notable successes, such as launching powerful AI models and expanding its Waymo robotaxi service. However, internal culture clashes and cost-cutting measures affected morale, with some employees feeling disillusioned by leadership and layoffs. Pichai's leadership was questioned, though he made efforts to streamline operations and foster innovation. The company's pursuit of government contracts, like Project Nimbus, led to protests and terminations, highlighting tensions over ethical concerns. Despite these challenges, Google continued to push forward in AI and other technological advancements.

Key takeaways:

  • Google faced internal challenges in 2024, with employees expressing concerns about leadership, morale, and compensation despite the company's strong financial performance.
  • The company experienced setbacks with its AI products, such as the Imagen 2 and AI Overview, leading to criticism and the need for improvements.
  • Google faced significant regulatory challenges, including antitrust rulings and demands for divestiture, while also pursuing federal government contracts that sparked internal protests.
  • Despite challenges, Google achieved notable successes in AI and cloud services, including the launch of new AI models and products, and maintained strong revenue growth.
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