Google Combining Its Android Software and Pixel Hardware Divisions to More Broadly Integrate AI 

Google logos are displayed when searched for Google in New York, Sept. 11, 2023. (AP)
Google logos are displayed when searched for Google in New York, Sept. 11, 2023. (AP)
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Google Combining Its Android Software and Pixel Hardware Divisions to More Broadly Integrate AI 

Google logos are displayed when searched for Google in New York, Sept. 11, 2023. (AP)
Google logos are displayed when searched for Google in New York, Sept. 11, 2023. (AP)

Google will combine the software division responsible for Android mobile software and the Chrome browser with the hardware division known for Pixel smartphones and Fitbit wearables, the company said Thursday. It's part of a broader plan to integrate artificial intelligence more widely throughout the company.

In a letter to employees, Google CEO Sundar Pichai said the changes will “turbocharge the Android and Chrome ecosystems” while helping to spur innovation.

The decision will place both operations under the oversight of Rick Osterloh, a Google executive who previously oversaw the company's hardware group. Not long ago, Google insulated Android development from the hardware division, saying it wanted to avoid giving its phone designers an unfair advantage over the other major smartphone makers who used Android — including Samsung and Motorola, as well as Chinese companies such as Oppo and Xiaomi.

Then a few years ago, Google started to position the Pixel as a flagship for demonstrating what AI could accomplish and leaned heavily into developing features that could demonstrate its potential. That meant more integration of AI hardware and software to power those features on mobile devices.

In an interview with The Verge, a tech publication, Osterloh noted that AI is the primary reason for bringing together Google's consumer hardware and software engineers. He argued that phone technology is already growing more dependent on AI, citing the development of the Pixel camera, which among other things uses the technology for features that enhance nighttime photos or automatically choose the best of several closely timed shots.

Combining the teams, Osterloh added, is a way for Google to move even faster on infusing AI into its features. Designing the Pixel camera several years ago, he said in the interview, required deep knowledge of not just the complex hardware and software systems involved, but also the then-early AI models used for image processing.

“That hardware-software-AI integration really showed how AI could totally transform a user experience,” Osterloh said. “That was important. And it’s even more true today.”

“What you’re now starting to see Google do is flex its core AI innovation engines,” said Chirag Dekate, an analyst with Gartner. “Google wants to dominate the AI, the commanding heights of the emerging AI economy, both on the consumer side as well as on the enterprise side, essentially by infusing AI everywhere and by connecting it.”

Meanwhile, the chief of Google's software division, Hiroshi Lockheimer, is left without a title and, according to Pichai's letter, will be starting some other unnamed projects. Lockheimer did join Osterloh for the Verge interview, though, and the two men insisted the changes weren't the result of a power struggle.

Google is also reorganizing its AI research and responsibility groups, although those changes mostly won’t directly affect consumer products — at least not for now.



Google Holds Illegal Monopolies in Ad Tech, US Judge Finds, Allowing US to Seek Breakup

A man walks past Google's offices in London's Kings Cross area, on Aug. 10, 2024. (AP)
A man walks past Google's offices in London's Kings Cross area, on Aug. 10, 2024. (AP)
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Google Holds Illegal Monopolies in Ad Tech, US Judge Finds, Allowing US to Seek Breakup

A man walks past Google's offices in London's Kings Cross area, on Aug. 10, 2024. (AP)
A man walks past Google's offices in London's Kings Cross area, on Aug. 10, 2024. (AP)

Alphabet's Google illegally dominated two markets for online advertising technology, a judge ruled on Thursday, dealing another blow to the tech giant and paving the way for US antitrust prosecutors to seek a breakup of its advertising products.

US District Judge Leonie Brinkema in Alexandria, Virginia, found Google liable for "willfully acquiring and maintaining monopoly power" in markets for publisher ad servers and the market for ad exchanges which sit between buyers and sellers. Publisher ad servers are platforms used by websites to store and manage their ad inventory.

Antitrust enforcers failed to prove a separate claim that the company had a monopoly in advertiser ad networks, she wrote.

Lee-Anne Mulholland, vice president of Regulatory Affairs, said Google will appeal the ruling.

"We won half of this case and we will appeal the other half," she said, adding that the company disagrees with the decision on its publisher tools. "Publishers have many options and they choose Google because our ad tech tools are simple, affordable and effective."

Google's shares were down around 2.1% at midday.

The decision clears the way for another hearing to determine what Google must do to restore competition in those markets, such as sell off parts of its business at another trial that has yet to be scheduled.

The DOJ has said that Google should have to sell off at least its Google Ad Manager, which includes the company's publisher ad server and ad exchange.

Google now faces the possibility of two US courts ordering it to sell assets or change its business practices. A judge in Washington will hold a trial next week on the DOJ's request to make Google sell its Chrome browser and take other measures to end its dominance in online search.

Google has previously explored selling off its ad exchange to appease European antitrust regulators, Reuters reported in September.

Brinkema oversaw a three-week trial last year on claims brought by the DOJ and a coalition of states.

Google used classic monopoly-building tactics of eliminating competitors through acquisitions, locking customers in to using its products, and controlling how transactions occurred in the online ad market, prosecutors said at trial.

Google argued the case focused on the past, when the company was still working on making its tools able to connect to competitors' products. Prosecutors also ignored competition from technology companies including Amazon.com and Comcast as digital ad spending shifted to apps and streaming video, Google's lawyer said.