May 2, 2025

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Microsoft Google Growth Apple Amazon Tariffs AI Strategy

The tech industry is experiencing a divergence in fortunes due to the impact of artificial intelligence and tariffs on consumer electronics. Companies like Microsoft and Google are seeing growth in cloud and digital ads, while others like Apple and Amazon are facing challenges. Apple is trying to mitigate the impact of tariffs by shifting production of US-bound iPhones to India and is also expected to face questions on its AI strategy. Google has started showing ads in conversations with chatbots, which could help the company keep its edge in digital advertising. The increasing use of AI is also creating new security challenges and boosting energy demand, with cybersecurity companies using more AI to detect and prevent attacks. Meanwhile, Meta has forecasted significant revenue from its generative AI products, and the insurance industry is starting to offer policies that cover risks related to AI. Additionally, there is a growing need for responsible AI use, with Nevada education officials outlining a vision for AI in schools and Pinterest launching features to label AI-generated images.

Key Takeaways

  • Big tech firms are experiencing diverging fortunes due to AI and tariffs, with Microsoft and Google seeing growth and Apple and Amazon facing challenges.
  • Apple is shifting production of US-bound iPhones to India to mitigate the impact of tariffs and faces questions on its AI strategy.
  • Google is showing ads in conversations with chatbots to maintain its edge in digital advertising.
  • The increasing use of AI is creating new security challenges and boosting energy demand.
  • Cybersecurity companies are using more AI to detect and prevent attacks.
  • Meta has forecasted significant revenue from its generative AI products.
  • The insurance industry is starting to offer policies that cover risks related to AI.
  • Nevada education officials have outlined a vision for responsible AI use in schools.
  • Pinterest is launching features to label AI-generated images.
  • There is a growing need for clear integrity policies and honor codes to define AI use in various fields.

Big Tech Firms See Mixed Fortunes

The fortunes of big tech firms are diverging due to the impact of artificial intelligence and tariffs on consumer electronics. While companies like Microsoft and Google are seeing growth in cloud and digital ads, others like Apple and Amazon are facing challenges due to tariffs. Apple is trying to mitigate the impact by shifting production of US-bound iPhones to India. The company is also expected to face questions on its AI strategy and tariffs when it reports its results. Google is also showing ads in conversations with some third-party AI chatbots, which could help the company keep its edge in digital advertising.

Apple Investors Seek Clarity on Tariffs and AI

Apple investors are seeking clarity on the impact of tariffs and the company's AI strategy as iPhone sales decline. The company is expected to report a small fall in iPhone sales, which would mark a second straight quarter of declines. Apple is trying to mitigate the impact of tariffs by shifting production of US-bound iPhones to India. The company is also slow to roll out some important AI features, which has led to concerns about its ability to compete with rivals. Apple has partnered with Alibaba to offer AI services in China, but a timeline for the roll-out has not been provided.

Big Tech Firms Diverge in Fortune

The fortunes of big tech firms are diverging due to the impact of artificial intelligence and tariffs on consumer electronics. While companies like Microsoft and Google are seeing growth in cloud and digital ads, others like Apple and Amazon are facing challenges due to tariffs. Apple is trying to mitigate the impact by shifting production of US-bound iPhones to India. The company is also expected to face questions on its AI strategy and tariffs when it reports its results. Some third-party merchants on Amazon are planning to sit out the company's July shopping event to protect their profit margins.

Google Places Ads in Chatbot Conversations

Google has started showing ads in conversations with chatbots operated by AI startups. The company's AdSense for Search network has expanded to include conversations with chatbots, which could help Google keep its edge in digital advertising. Google made the move after conducting tests with a handful of startups, including AI search apps iAsk and Liner. The company is rolling out the feature following tests with AI search startups, which could help Google capitalize on the burgeoning trend of users using AI chatbots to search the web and answer common queries.

Google Shows Ads in AI Chatbot Conversations

Google's AdSense advertising network has started supporting ads inside users' chats with some third-party AI chatbots. The company is rolling out the feature following tests with AI search startups iAsk and Liner. Google is seeking to capitalize on the trend of users using AI chatbots to search the web and answer common queries. The company has invested heavily in AI tools and products, with a slate of large language models and frequent updates to its Gemini AI apps and models. Google did not immediately respond to a request for comment on the new feature.

AI Threats Require More AI for Security

The increasing use of artificial intelligence is creating new security challenges, including prompt injections and data exfiltration. Cybersecurity companies are tackling this problem by using more AI to detect and prevent attacks. Large language models are vulnerable to various novel attacks, and their "black box" nature makes them tricky to secure. However, these models are also good at analyzing text and other data, and can be used to train AI watchdogs. These watchdogs can examine user prompts and model responses for signs of attacks, and can help to prevent data breaches. The use of AI in security is an arms race, with good-guy AI being used to fight bad-guy AI.

Meta Forecasts $1.4 Trillion in AI Revenue

Meta has forecasted that its generative AI products will generate $2 billion to $3 billion in revenue in 2025, and between $460 billion and $1.4 trillion by 2035. The company has revenue-sharing agreements with certain companies that host its open Llama collection of models, and has launched an API for customizing and evaluating Llama models. Meta AI, the company's AI assistant, may eventually show ads and offer a subscription option with additional features. The company is spending an enormous amount on its AI product groups, with a budget of over $900 million in 2024 and potentially exceeding $1 billion in 2025.

AI Boosts Energy Demand and Cybersecurity Risks

The increasing use of artificial intelligence is boosting energy demand and creating new cybersecurity risks. The energy sector needs to be protected from cyber adversaries, and the US needs to be energy dominant to maintain its AI supremacy. The demand for power to support AI is expected to increase significantly, with AI accounting for 14% of global data center electricity demand today and expected to double in the next two years. The energy sector is a large and attractive attack surface for malign cyber actors, and the threat from these actors is real. The US needs to double down on efforts to secure its power grids and protect the energy sector from cyber attacks.

Nevada Education Officials Outline AI Vision

The Nevada Department of Education has released a guide on the use of artificial intelligence in schools. The document outlines a set of principles for the responsible use of AI, including security, transparency, empowerment, learning, leadership, achievement, and responsible use. The guide emphasizes the importance of digital literacy, human connections, and preparing students for a future where AI will be more common. The document also highlights the need for clear integrity policies and honor codes to define how AI can and should be used in schools.

Insurance for AI-Related Risks

The insurance industry is starting to offer policies that cover risks related to artificial intelligence, such as AI hallucinations and model drift. Chaucer Group has partnered with Armilla AI to launch a new third-party liability insurance product that covers liabilities arising from the mechanical under-performance of AI systems. Other insurance companies, such as Relm Insurance and Munich Re, are also offering AI liability insurance products. These policies aim to address the unique risks posed by AI and provide financial protection against specific underperformance scenarios.

Pinterest to Label AI-Generated Images

Pinterest is launching new features to help users identify and avoid AI-generated content on its platform. The company will automatically label images that are detected to be made or edited using generative AI, and allow users to see fewer of them when browsing for similar topics. Pinterest identifies AI-generated images by analyzing their metadata and using classifiers that automatically detect gen AI content. The company is also allowing users to appeal if they believe their pins have been mislabeled.

AI Researchers Conduct Secret Experiment on Reddit Users

A group of researchers from the University of Zurich conducted a secret experiment on Reddit users to see if they could change their minds using AI chatbots. The researchers created AI bots that left over 1,700 comments on the r/changemyview subreddit, using various assumed guises to tailor their responses for maximum persuasiveness. The experiment was revealed to the moderators of the subreddit, who notified the community and criticized the researchers for their actions. Reddit's chief legal officer announced that the company would be pursuing formal legal action against the University of Zurich.

Minnesota State University to Launch AI Institute

Minnesota State University Moorhead is launching a new Institute of Applied AI, thanks to funding from an anonymous donor. The institute will focus on the practical applications of artificial intelligence and will be open in the fall. The university's vice president of enrollment management and strategic efforts, Jason Trainer, discussed the plans for the institute on a radio show. The institute will provide students with the skills and knowledge needed to work with AI in various fields.

Sources

Artificial Intelligence Big Tech Cloud Computing Digital Advertising Tariffs AI Strategy