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Alphabet Inc‘s (NASDAQ:GOOG) (NASDAQ:GOOGL) subsidiary Google DeepMind has decided to transition from a research lab to an AI product factory. This move could potentially challenge the company’s long-standing dominance in foundational research.
What Happened: Google DeepMind, has merged its two AI labs to focus on developing commercial services. This strategic change could potentially disrupt the company’s traditional strength in fundamental research, reported Bloomberg.
The decision to shift gears comes in the wake of a series of AI product launches by rival companies, including OpenAI and Google itself. The launch of AI Overviews, a product that provides responses to certain searches, was marred by embarrassing suggestions.
The feature started giving embarrassing suggestions, like advising people to eat rocks and put glue on pizza. The following week, Google introduced new safeguards, partially to prevent Overviews from unintentionally presenting satirical content as fact. This misstep was particularly damaging for a company in need of an AI success.
Many in the tech industry believe that products like ChatGPT could potentially make Google Search obsolete, a crucial concern given that Search accounts for the majority of Google’s revenue, making the stakes seem existential.
See Also: ‘Warning Flags’: Expert Says Nvidia In ‘Bubble-ish Territory,’ Points To Potential Market Pullback
Google announced the merger of its two elite AI teams, Google Brain and DeepMind, in April 2023. The newly formed AI “super-unit” called Google DeepMind was tasked with improving Google’s commercial AI products while maintaining its strength in foundational research. The company is still working on achieving these goals.
Combining the two divisions leverages what Demis Hassabis, co-founder of Google DeepMind identifies as one of Google's greatest strengths: its large pool of talented researchers working on fundamental AI. However, this move risks disrupting the culture that has driven Google's success in foundational AI research.
According to the report, some researchers familiar with the lab are frustrated by having to follow road maps they feel have been imposed from above. Previously, some of the biggest advances came from small teams that collaborated informally, and there is a concern that the new all-hands approach leaves less room for experimentation.
Why It Matters: The transition of Google DeepMind from a research lab to a commercial AI product factory is a strategic move in response to growing competition in the AI sector. In April 2023, Google’s CEO Sundar Pichai announced a significant restructuring to accelerate AI development, consolidating all AI-related teams under DeepMind. This reorganization aims to outpace competitors like Microsoft Corp, which has been making significant strides in AI.
Additionally, the development of AlphaFold 3, an AI model capable of predicting the structure and interactions of biological molecules, highlights the potential for AI in scientific advancements. AlphaFold 3 aims to aid scientists in fighting diseases, showcasing the practical applications of AI in healthcare.
However, the shift towards commercialization has not been without its critics. Hassabis himself has voiced concerns over the exaggerated hype surrounding AI, which he believes could overshadow actual scientific progress. This sentiment underscores the delicate balance Google DeepMind must maintain between innovation and commercialization.
Moreover, the departure of co-founder Mustafa Suleyman to Microsoft in March adds another layer of complexity to DeepMind’s journey. Suleyman’s move to Microsoft, where he has described his experience as “truly transformational,” indicates the competitive and dynamic nature of the AI industry.
Image Via Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
