The End of Google

Colin’s note: OpenAI has reinstated CEO Sam Altman…

It’s been less than a week since the OpenAI board sacked Altman and sparked a revolt across the company. More than 700 employees threatened to walk.

This is probably why, as of last night, Sam Altman has returned and the board members responsible for his initial exit will resign.

It’s all very sensational. But there’s one thing I want you to take away from all this drama.

While OpenAI’s vision going forward is still up in the air, one thing is clear: Microsoft is holding the lead in the AI race… While another tech giant’s poor leadership may spell disaster down the line for it. 

I get into it all in today’s video. Just click the image below to watch… Or you can read the transcript below that my team has edited for flow…

Hello everyone, and welcome to The Bleeding Edge.

This week, the AI industry was turned upside down. The uncertainty, drama, and distractions have been like a soap opera playing out in real-time.

[In case you missed it, the board at OpenAI – the company behind the popular chatbot ChatGPT – gave CEO Sam Altman the boot earlier this week.

And what followed was essentially a mutiny as more than 700 of the company’s roughly 770 employees threatened to walk out unless the sitting board resigned… and Altman was brought back.]

The future of Sam Altman’s leadership and the fate of ChatGPT were a mystery.

But it appears that at least one part of the OpenAI saga is over.

Last night, the company revealed that Sam Altman, the popular CEO, is returning. And a new board of directors and potentially an entirely new corporate structure awaits.

It’s uncertain how the drama and new board will change OpenAI’s vision going forward.

But one thing is crystal clear… Microsoft remains at the head of the table when it comes to AI.

The tech giant acted swiftly over the weekend to ensure that it will remain in the driver’s seat when it comes to AI development.

Almost immediately, Microsoft hired Sam Altman and other staff who were either let go or felt betrayed by OpenAI.

Microsoft CEO Satya Nadella did a television interview with Bloomberg and maintained communication on social media platforms like Twitter – now known as X.

Ultimately Sam Altman’s return to OpenAI will maintain a partnership between the two companies again… giving Microsoft a distinct advantage going forward.

Another thing that became apparent this week is the lack of leadership at Google.

Where was Google during all this?

CEO Sundar Pichai hasn’t tweeted or provided any communication.

Other Silicon Valley tech CEOs like Marc Benioff of Salesforce were actively recruiting OpenAI employees… going so far as to provide his personal email address for applicants to apply.

Google was nowhere to be found. The tech giant has already been embarrassingly slow in the AI race.

Microsoft has beaten the company to the punch on virtually all product announcements and releases.

Microsoft’s partnership with OpenAI has a lot to do with that.

But it’s not like Google hasn’t been working on AI for longer – with significantly more resources than OpenAI has – even with Microsoft as a partner.

Google’s ChatGPT competitor Bard is still an experiment in beta testing. I use it occasionally but find that ChatGPT is far superior across most tasks.

Google has teased a product called Gemini that was slated to release this month. But rumors are that the product won’t be seen until next year.

This is a disgrace.

We’re witnessing one of the world’s greatest tech companies fail to rise to the occasion.

This falls directly on the shoulders of CEO Sundar Pichai.

If the company had a viable alternative to ChatGPT, it could have solidified itself as a much stabler and more reliable AI solution.

The fact Google’s AI product is still in beta testing and Gemini is not shipping until 2024 is unacceptable.

With legal and investing analysts believing that Google could lose its antitrust lawsuit – and potentially lose its ability to be a default search engine – Google is in big trouble.

The lack of leadership, execution, and showing up during one of the most memorable weeks in tech history tells me the tech giant’s days are numbered.

The OpenAI drama opened a door for Google – and they didn’t show up.

I’d avoid Google stock until they find a leader who can rise to the challenge.

And if you’re a shareholder of Microsoft – or any other tech companies that are aggressively acting during this AI arms race – I’d be thankful.

Speaking of thankful …

I hope you all have a wonderful Thanksgiving.

Safe travels if you are heading off somewhere. I look forward to seeing you again soon.

My name is Colin Tedards, and that was today’s Bleeding Edge.