June 5, 2024

Dangerous cocktail

Hi there, 

When Google looked to be moving slowly on AI, it got blasted for being bloated and un-innovative.

When Google launches AI products, it gets ripped as well.

This is a tough place for large companies.

When the whole world uses your search engine, even a 0.01% error rate, when mixed with social media, makes for a very dangerous Molotov cocktail.

As a result, Google's AI Overviews, which mostly work, ignited a media firestorm when some queries turned up funky results. Google ultimately implemented more guardrails last week to prevent further explosions.

How funky were the results?

Here’s one Google AI Overview which suggested that to keep cheese stuck on pizza you should use 1/8 cup of non-toxic glue.

Disclaimer: I've not tried this so can't confirm it does not, in fact, work.

But where did this come from?

What credible content source did Google distill this glue pizza recipe from?

It came from an 11-year-old post on Reddit from a user (see below) whose name suggests that he definitely knows his pizza.

I, for one, hope Google continues to push forward on its AI Overviews as they are generally quite helpful.

Of course, there is a lot of uncertainty around the impact of these AI Overviews.

• Will they spell more bad news for media companies (continuing their impressive 20-year losing streak)?
• How do companies built on great SEO survive?
• And most importantly, what happens to Google’s business model if clicking on links is no longer the intended user behavior?

Swing and a miss

Last week, Salesforce reported its first revenue miss since 2006. Its stock dropped nearly 20% on the news — its worst day since 2004.

The company blamed corporate belt-tightening, alongside changes in its GTM strategy, for its performance.

Salesforce is still leaning relentlessly on its AI strategy for growth, though the company acknowledged back on its earnings call in February that it doesn’t expect to see a “material contribution” from its newest AI products this year.

See more on its AI strategy — and that of 10 other public companies — in this free report.

Juicy

There are just 5 days left until Apple’s Worldwide Developer Conference.

The big tech co is expected to unveil new operating systems, genAI features, and a partnership with OpenAI to bring ChatGPT into the iPhone.

Apple has yet to make major strides in genAI, so WWDC could be its shot at articulating how it plans to catch up to its big tech peers, like Google, Microsoft, Amazon, and Nvidia.

No pressure.

To learn more about how its competitors have raced ahead, check out this research brief.

Runnin’ down a dream

For instance, many automakers have scaled back EV production in response to slowing consumer demand, but they continue to charge toward an electric future.

Beyond EVs, where else have leaders placed bets to prepare for the future? 

We mined acquisitions, investments, and partnerships for 15 of them to find out.

Industry Standard

The Economist. The outlet covers humanoid robots and cites CB Insights data.

Becker’s Hospital Review. Naomi Diaz (@NaomiCDiaz) discusses Elon Musk’s Neuralink and mentions CB Insights data.

USA Today. Mehdi Punjwani and Sierra Campbell tackle business failures using CB Insights research.

I love you. 

Anand 

@asanwal 

P.S. Are you a data nerd who loves emerging tech, fintech, or biotech as much as I love you? We got some open spots on our research term — check ‘em out here.

P.P.S. If you try glue on your pizza, please lmk how it is. I’m very curious.

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