CEO Sundar Pichai Calls on Google Employees to Gear Up for Crucial 2025

Last week, Google CEO Sundar Pichai warned employees that 2025 will be a critical year for the company, as it navigates growing competition, regulatory challenges, and the fast-evolving landscape of artificial intelligence.

By Sheenu Gupta On Dec 29, 2024 Share with new partner:

Last week, Google CEO Sundar Pichai addressed the company’s workforce, stressing that the upcoming year, 2025, would be a crucial one for the tech giant. He acknowledged that Google is currently grappling with several pressing challenges, including intensifying competition in the technology sector, mounting regulatory pressures, and the fast-paced evolution of artificial intelligence.

Pichai’s message conveyed the importance of navigating these obstacles effectively, urging the company to stay ahead in an environment that is rapidly changing and becoming more complex. His words served as a call to action for employees to remain focused and prepared for the challenges that lie ahead.

During a strategy meeting held on December 18, 2023, where Pichai and other Google executives sported festive ugly holiday sweaters, the team discussed the company’s ambitious goals for 2025, with a particular focus on advancements in artificial intelligence. According to audio obtained by CNBC, Pichai conveyed a sense of urgency and anticipation for the year ahead.

He emphasized the critical nature of 2025, urging the team to recognize the importance of accelerating their efforts. “The stakes are high,” Pichai stated, pointing out that the company is at a turning point where significant disruption is on the horizon.

He called for Google to be relentlessly focused on harnessing AI technology to unlock its full potential and address real-world challenges for users, stressing that moving faster and staying ahead in this rapidly evolving field is crucial for the company’s success.

Some Google employees gathered in person at the company’s headquarters in Mountain View, California, for the strategy meeting on December 18, while others joined virtually to participate in the discussions. Pichai’s remarks came after what had been an exceptionally challenging year for Google, marked by intense pressures not seen since the company went public two decades ago. While certain areas of the business, such as search ads and cloud services, continued to show strong revenue growth, Google faced mounting competition in its core markets. At the same time, internal issues surfaced, including cultural clashes within the company and growing concerns about Pichai’s long-term vision for the organization. Moreover, the regulatory landscape became more stringent, with increased oversight adding another layer of complexity to Google’s operations.

In August, a federal judge ruled that Google unlawfully holds a monopoly in the search market, a significant legal setback for the company. Later, in November, the U.S. Department of Justice (DOJ) requested that Google be compelled to divest its Chrome internet browser unit as part of its ongoing antitrust investigations. Additionally, in a separate case, the DOJ accused Google of illegally dominating the online advertising technology space. The trial for this case concluded in September, and the company is now awaiting a judge’s ruling on the matter.

Meanwhile, in the U.K., Britain’s competition watchdog issued a statement of objections against Google’s advertising practices, concluding that the company’s behavior is harming competition in the country. These developments have placed Google under intense regulatory scrutiny on a global scale.

In light of these challenges, Pichai acknowledged the growing pressure the company is facing, stating, “It’s not lost on me that we are facing scrutiny across the world.” He noted that this level of scrutiny is a natural consequence of the company’s size and success. He also highlighted a broader trend in the tech industry, where technology now has a profound and far-reaching impact on society. Pichai emphasized the importance of staying focused during this period, stressing that despite the external pressures, Google must remain vigilant and not allow distractions to derail its efforts.

Google’s search business continues to dominate the market, but the rise of generative AI has introduced new ways for people to access information online, bringing a wave of new competitors. OpenAI’s ChatGPT sparked the AI hype cycle in late 2022, attracting significant investment, including from Microsoft, which helped raise its valuation to $157 billion. In July, OpenAI revealed plans to launch its own search engine. Meanwhile, Perplexity is also promoting its AI-driven search service, recently securing $500 million in funding, pushing its valuation to $9 billion.

In response to these challenges, Google is making significant investments to maintain its leadership, primarily through its Gemini AI model. The Gemini app, which includes Google’s chatbot, is central to this strategy. Pichai emphasized that “building big, new business” is a key priority, with executives aiming for the Gemini app to become Google’s next major product, targeting half a billion users. Currently, the company has 15 apps that have reached that milestone.

Pichai mentioned the strong momentum behind the Gemini app, particularly in recent months, but acknowledged the need for more work in 2025 to close the gap with competitors and secure a leadership position. Scaling Gemini on the consumer side will be a top priority for the company next year.

At the meeting, Pichai presented a chart comparing large language models, showing Gemini 1.5 ahead of OpenAI’s GPT and other competitors. He expressed confidence in Google’s ability to stay at the cutting edge of AI, saying, “I expect some back and forth” in 2025, but adding that Google would remain “state of the art.” Pichai also admitted that Google has had to play catch-up in this field but emphasized that, historically, it’s not always about being first—it’s about executing well and delivering the best product. He believes that 2025 will be about mastering that execution.

During a Q&A session, an employee raised a concern that ChatGPT has become synonymous with AI, similar to how Google is associated with search, and asked what Google’s plan was to address this in the coming year. Pichai turned to DeepMind co-founder Demis Hassabis, who shared that the company is focused on “turbocharging” the Gemini app. He highlighted the progress the app has made in user numbers since its launch in February, noting that the products would continue to evolve significantly in the next couple of years. Hassabis outlined a vision for a universal assistant capable of seamlessly operating across any domain, device, or modality.

Project Astra, Google’s experimental universal assistant that was announced in May, is set for an update in the first half of 2025. During the meeting, an employee asked whether Google would follow other companies by charging a high subscription fee, like $200 per month, for AI products. Demis Hassabis responded that Google currently has no plans to implement such a subscription model, pointing out that the $20 monthly charge for the Gemini Advanced plan is already a good value. While he didn’t rule out the possibility in the future, he emphasized that there are no plans for such a pricing model at this time.

Towards the end of the meeting, Josh Woodward, head of Google Labs, took the stage with high energy, as the song “Kernkraft 400” played in the background. Woodward challenged himself to do six demos in eight minutes, starting with Jules, a coding assistant currently in a trusted tester program. He described it as representing “the future of software development.” He then showcased NotebookLM, an AI-driven notetaking product that will have updates in 2024, including a new podcasting tool. Woodward demonstrated a feature that allows users to “call in” to a podcast, marking a new way of interacting with content.

Next, he introduced Project Mariner, an AI-powered Chrome extension designed for multi-tasking. Woodward showed how it could add the top restaurants from Tripadvisor directly to Google Maps, which worked flawlessly and prompted applause from the audience.

Throughout the meeting, Pichai reminded employees to “stay scrappy,” a reference to the company’s recent efforts to cut costs, including laying off about 6% of its workforce in 2023 and focusing on greater efficiency. By the end of Q3, Alphabet had 181,269 employees, a 5% decrease from the previous year.

Pichai also reflected on the company’s early days, referencing Google founders Larry Page and Sergey Brin. He pointed out that in the beginning, Google’s founders made very resourceful decisions when building their data centers, emphasizing that constraints often lead to creative solutions. “Not all problems are always solved by headcount,” Pichai noted, reminding employees that innovation often arises from limitations.