OpenAI complained to EU regulators about Microsoft's anticompetitive conduct—despite Microsoft being its largest investor with $13 billion committed. The move signals OpenAI's shift from AI supplier to platform owner, using regulators as leverage.
Good Morning from San Francisco, Nineteen percent of high schoolers report romantic relationships with AI. Federal orders accelerate school adoption
Washington promotes AI in classrooms. New data shows 19% of high schoolers report romantic AI relationships, 42% use it for mental health support. The more schools deploy AI, the more students feel disconnected from teachers—and from reality.
Google faces mounting evidence of its search monopoly. A federal judge recently ruled – for the second time in a year – that Google illegally maintains a monopoly in ad tech. Google's response?
They won half the case. It sounds like claiming victory in a soccer match because you only lost by two goals instead of four ;-)
The Department of Justice and 17 US states want Google to sell its network ad business. This unit generates 12% of Alphabet's revenue. Google plans to appeal, particularly disagreeing with decisions about its publishers' tools.
Meanwhile, Google keeps tightening its grip on search. Their latest move redirects country-specific domains like Google.fr and Google.co.uk to Google.com. While Google insists this change won't affect how search works, it sparked panic in the SEO community. Google's John Mueller had to calm everyone down, explaining that country-specific domains and language tags still matter. It's reminiscent of a parent moving the cookie jar but promising the cookies taste exactly the same.
The company's recent AI initiatives raise fresh monopoly concerns. Their AI Overviews now dominate search results, creating what amounts to a Google inception – search results linking to more search results. It's like asking for directions and being told to keep asking for directions.
Google's ad safety measures tell another story of unchecked power. In 2024, they banned or suspended 200% more advertisers than in 2023. While Google credits AI for this efficiency, advertisers complain about wrongful suspensions. When you're the only game in town, getting kicked out of the stadium means game over.
Elizabeth Reid, Google's head of search, recently defended their AI Overviews, claiming they lead to "higher quality" clicks despite reducing overall traffic to websites. Publishers watching their traffic plummet might disagree, but Reid argues these fewer clicks somehow mean more. It's like a diet plan that promises you'll feel fuller by eating less food – technically possible, but highly suspicious without proof.
Reid also revealed plans to monetize these AI summaries with ads above, below, and within them. Their example? Turning a simple search for couch-cleaning advice into a sales pitch for stain removers. Because nothing improves the search experience quite like turning every query into a shopping opportunity.
Google's market power shows in subtle ways too. Recent ranking volatility sparked rumors about tracking tools being blocked, leaving SEO professionals in the dark. When one company controls the digital highway, they decide not just which roads to build but also who gets to measure the traffic.
The company maintains impressive mental flexibility when defining its role. Reid insists Google Search differs from chatbots because it focuses on information – apparently unaware that information is precisely what chatbots handle. Google claims to prioritize factuality over conversation, suggesting you can't have both accurate information and pleasant discourse. This might explain a few awkward meetings at Google HQ.
Looking ahead, Google promises more personalization and hints at possible paid features, though they insist search will stay free. They added a cryptic "never say never" about paid options – words that surely won't keep marketing departments up at night.
Why this matters:
ASML fills an 18-month CTO vacancy as the chip monopoly races to expand Eindhoven capacity, deploy AI tools, and navigate China export bans—while every AI model depends on machines only it can make. Succession meets systemic risk.
Microsoft licenses Harvard Medical School content for Copilot health queries while training models to replace OpenAI's infrastructure. The healthcare play addresses a billion-download gap and builds switching costs where credibility trumps speed.
Sam Altman laid out OpenAI's plan: one AI assistant that follows users everywhere, backed by a trillion-dollar compute buildout. The vision is coherent. The execution surface is vast, spanning chips, power, and partner risk across simultaneous bets.
OpenAI opened ChatGPT to third-party apps that render inside conversations, built on an open standard but distributed through algorithms it controls. The trade: reach 800M users, lose funnel ownership. Platform economics arrive at chat.
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