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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.

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Apple to pay Google $1 billion a year for access to AI model for Siri

Apple plans to pay Google about $1 billion a year to use the search giant’s AI model for Siri, Bloomberg reports. Google’s model — at 1.2 trillion parameters — is way bigger than Apple’s current models.

The deal aims to help the iPhone maker improve its lagging AI efforts, powering a new Siri slated to come out this spring.

Apple had previously been considering using OpenAI’s ChatGPT and Anthropic’s Claude, but decided in the end to go with Google as it works toward improving its own internal models. Google, which makes a much less widely sold phone, the Pixel, has succeeded in bringing consumer AI to smartphone users where Apple has failed.

Google’s antitrust ruling in September helped safeguard the two companies’ partnerships — including the more than $20 billion Google pays Apple each year to be the default search engine on its devices — as long as they aren’t exclusive.

Apple had previously been considering using OpenAI’s ChatGPT and Anthropic’s Claude, but decided in the end to go with Google as it works toward improving its own internal models. Google, which makes a much less widely sold phone, the Pixel, has succeeded in bringing consumer AI to smartphone users where Apple has failed.

Google’s antitrust ruling in September helped safeguard the two companies’ partnerships — including the more than $20 billion Google pays Apple each year to be the default search engine on its devices — as long as they aren’t exclusive.

tech

Netflix creates new made-up metric for advertisers

It’s not quite WeWork’s community-adjusted EBITDA, but it’s also not quite a real number: Netflix announced today that it has 190 million “monthly active viewers” for its lower-cost ad-supported tiers. The company came up with the metric by measuring the number of subscribers who’ve watched “at least 1 minute of ads on Netflix per month” and multiplying that by what its research assumes is the number of people in that household.

It builds on Netflix’s previous attempt at measuring ad viewership with monthly active users, which is the number of profiles that have watched ads (94 million as of May). The MAV measurement, of course, is a lot bigger, and bigger numbers are more attractive to advertisers, who are spending more and more on streaming platforms.

“After speaking to our partners, we know that what they want most is an accurate, clear, and transparent representation of who their ads are reaching,” Netflix President of Advertising Amy Reinhard explained in a press release. “Our move to viewers means we can give a more comprehensive count of how many people are actually on the couch, enjoying our can’t-miss series, films, games, and live events with friends and family.”

Netflix last reported its long-followed and more easily understood paid membership numbers at the beginning of the year, when it crossed 300 million.

It builds on Netflix’s previous attempt at measuring ad viewership with monthly active users, which is the number of profiles that have watched ads (94 million as of May). The MAV measurement, of course, is a lot bigger, and bigger numbers are more attractive to advertisers, who are spending more and more on streaming platforms.

“After speaking to our partners, we know that what they want most is an accurate, clear, and transparent representation of who their ads are reaching,” Netflix President of Advertising Amy Reinhard explained in a press release. “Our move to viewers means we can give a more comprehensive count of how many people are actually on the couch, enjoying our can’t-miss series, films, games, and live events with friends and family.”

Netflix last reported its long-followed and more easily understood paid membership numbers at the beginning of the year, when it crossed 300 million.

tech

Ahead of Musk’s pay package vote, Tesla’s board says they can’t make him work there full time

Ahead of Tesla’s CEO compensation vote at its annual shareholder meeting tomorrow, The Wall Street Journal did a deep dive into how Elon Musk, who stands to gain $1 trillion if he stays at Tesla and hits a number of milestones, spends his time.

Like a similar piece from The New York Times in September, this one has a lot of fun details. Read it all, but here are some to tide you over:

  • Musk spent so much time at xAI this summer that he held meetings there with Tesla employees.

  • He personally oversaw the design of a sexy chatbot named Ani, who sports pigtails and skimpy clothes and for whom “employees were compelled to turn over their biometric data” to train.

  • The chatbot, which users can ask to “change into lingerie or fantasize about a romantic encounter with them,” has helped boost user numbers, which are still way lower than ChatGPT’s.

  • Executives and board members have told top investors in the past few weeks that they can’t make Musk work at Tesla full time. Board Chair Robyn Denholm explained that in his free time, Musk “likes to create companies, and they’re not necessarily Tesla companies.”

Like a similar piece from The New York Times in September, this one has a lot of fun details. Read it all, but here are some to tide you over:

  • Musk spent so much time at xAI this summer that he held meetings there with Tesla employees.

  • He personally oversaw the design of a sexy chatbot named Ani, who sports pigtails and skimpy clothes and for whom “employees were compelled to turn over their biometric data” to train.

  • The chatbot, which users can ask to “change into lingerie or fantasize about a romantic encounter with them,” has helped boost user numbers, which are still way lower than ChatGPT’s.

  • Executives and board members have told top investors in the past few weeks that they can’t make Musk work at Tesla full time. Board Chair Robyn Denholm explained that in his free time, Musk “likes to create companies, and they’re not necessarily Tesla companies.”

tech

Motion Picture Association to Meta: Stop saying Instagram teen content is “PG-13”

In October, Meta announced that its updated Instagram Teen Accounts would by default limit content to the “PG-13” rating.

The Motion Picture Association, which created the film rating standard, was not happy about Meta’s use of the rating, and sent the company a cease and desist letter, according to a report from The Wall Street Journal.

The letter from MPA’s law firm reportedly said the organization worked for decades to earn the public’s trust in the rating system, and it does not want Meta’s AI-powered content moderation failures to blow back on its work:

“Any dissatisfaction with Meta’s automated classification will inevitably cause the public to question the integrity of the MPA’s rating system.”

Meta told the WSJ that it never claimed or implied the content on Instagram Teen Accounts would be certified by the MPA.

The letter from MPA’s law firm reportedly said the organization worked for decades to earn the public’s trust in the rating system, and it does not want Meta’s AI-powered content moderation failures to blow back on its work:

“Any dissatisfaction with Meta’s automated classification will inevitably cause the public to question the integrity of the MPA’s rating system.”

Meta told the WSJ that it never claimed or implied the content on Instagram Teen Accounts would be certified by the MPA.

tech

Dan Ives expects “overwhelming shareholder approval” of Tesla CEO pay package

Wedbush Securities analyst Dan Ives, like prediction markets, thinks Tesla CEO Elon Musk’s $1 trillion pay package will receive “overwhelming shareholder approval” at the company’s annual shareholder meeting Thursday afternoon. The Tesla bull, like the Tesla board, has maintained that approval of the performance-based pay package is integral to keeping Musk at the helm of the company, which in turn is integral to the success of the company. Ives is also confident that investors will back the proposal allowing Tesla to invest in another of Musk’s companies, xAI.

“We expect shareholders to show overwhelming support tomorrow for Musk and the xAI stake further turning Tesla into an AI juggernaut with the autonomous and robotics future on the horizon,” Ives wrote in a note this morning.

The compensation package has received pushback, including from Tesla’s sixth-biggest institutional investor, Norway’s Norges Bank Investment Management, and from proxy adviser Institutional Shareholder Services.

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