Google may cut moonshots, Seven years after Alphabet Inc. was founded and came to be, it’s invested in various companies that have the potential to be promising and are appropriately dubbed the other investments of Alphabet. Google’s advertising, search, hardware, and service business remain Alphabet’s primary bet. However, the company is currently re-evaluating its priorities and investment in other investments, such as self-driving vehicles, drone delivery systems and the discovery of drugs in light of the company’s shift to health-related research.
Insisting on offbeat technology simply because a brand believes in its potential could quickly cost you. In a detailed study, The Information discloses that the eleven currently inactive other bets that cost Alphabet about $3 billion of operating loss thus to date, and of that, the most significant loss of a $4.5 billion deficit was reported during the beginning of the year 2022.
The search giant has also acknowledged an economic slowdown, citing the announcement of a stop on hiring, and its latest annual report also revealed plans for fewer moonshots than average. Similar results are observed in Alphabet’s other bets and X, the bizarre idea incubator that was home to Waymo for a time. This suggests growing pressure from top executives and investors to change their bets’ attention to causes that will yield higher profits.
Research in the healthcare field is a new area of study, beginning with Calico Biotech, a biotech business investigating ways to combat the effects of ageing and prevent ailments related to age. Calico attracted 20% more employees and investors in 2021; however, the company’s founders and senior management resigned for different reasons. The company is currently testing two cancer drugs and an ALS-preventing formulation in various phases of trials. The other moonshot of Alphabet, Verily, also struck agreements related to COVID-19 screening and monitoring of the effectiveness of the COVID-19 vaccine by Pfizer. These developments demonstrate that the new field of interest should not be a problem for Alphabet but what happens to the employees?
The other employees of Alphabet’s bets comprise around 4 per cent of the total headcount, which includes several business unit leaders under the X’s head Astro Teller. However, Recent changes within Alphabet, which are a sign of its shifting interests, have seen a nearly halving of Teller’s direct reporting within the last 18 months. X continues to employ about 700 employees, While Waymo’s 2,500-strong team is the largest of the other betting options.
Alphabet is not a stranger to closing projects such as those of the Loon balloons, and we may be seeing the company turn off the lights for a couple of other betting opportunities in the coming days. The brand may also spin off projects as separate entities, like the one it had with Waymo, which is encouraging hope that there will be some positive results from these shifts within the company. It will be fascinating to see the company’s plan for bigger bets such as Verily, DeepMind, and Google Fiber.
Google Denies the Latest China Censorship Demand
Silicon Valley has begun pushing back against CCP rules. Could shifts in supply chain manufacturing and dependencies be coming soon?
For a long time, Silicon Valley’s most prominent tech companies have done a disgraceful job of surrendering to China and the Chinese Communist Party.
However, as these relationships begin fraying, the results could significantly impact the tech industry’s dependence on the Chinese supply chain manufacturing machinery.
Being able to connect to China with its 1.5 billion citizens, many of whom are in the middle class due to the rise in the economy, was always the goal of American capitalists looking for opportunities outside the U.S.
Technology companies were not different in their quest to capture the Chinese market. In the past, many were willing to defy their internal policies to take a bite of the apple.
The year before, Microsoft’s Bing web search engine was reported to have blocked results of searches for “tank man,” the famous image of a single person sitting against a tank in the Chinese Tiananmen square massacre, which took place in Beijing.
In 2020, a Chinese-based employee of the video-conferencing firm Zoom was accused of blocking virtual meetings to mark the anniversary of the same massacre.
Does Google had enough?
Google is a division of the parent firm Alphabet ( GOOGL) . It has attempted to play the Chinese censorship game previously.
In 2018 The company came under criticised by its employees and media following the revelation that it was the case that they were working on a Chinese search engine project known as Dragonfly, which was planned to be severely blocked.
Many years later, Google, possibly learning from the Dragonfly scandal, is taking the opposite approach.
The company’s algorithm, which is designed to rank results according to popularity, has refused to alter the results of its search for “Hong Kong’s National Anthem” to show the national anthem of China.
Users who search for the song are directed to websites featuring Glory to Hong Kong, the protest anthem unofficially born from the pro-democracy demonstrations of 2019, which erupted across the city.
China has banned the song since 2020, and Hong Kong’s security minister Chris Tang said that a request was made to Google to change the results of a search for a protest anthem with the national anthem of China.
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“We have contacted Google to ask them to include the proper national anthem on the forefront of results, but Google did not agree,” Tang said, according to The Guardian.
Google did not respond immediately to a request for comments. However, Google is now beginning to establish a pattern of disobeying the CCP.
The manufacturing industry in the People’s Republic
China’s remarkable rise from a third-world country to becoming the world’s largest global economy was based on the strength of its industry sector.
Countries around the globe are turning to China for cheap manufacturing requirements. No country has depended more on China to meet its manufacturing requirements than the U.S., with China exporting more than $577 billion worth of goods (18 per cent of all trade) towards America. U.S. in 2021 alone.
However, the recent lockdowns have highlighted the Foxconn factory in the United States, which produces the majority (70 per cent) of iPhones sold by Apple ( AAPL).
This weekend the Wall Street Journal reported that Apple had increased its efforts to shift some of the production of its products outside of China instead of manufacturing competitors from India in India and Vietnam.
The disruptions within the Foxconn facility linked with the Zero Covid lockdowns and issues regarding worker wages have led to strike action at the plant.
According to Bloomberg, Apple expects to make 3 million fewer iPhones than it had previously predicted due to continuing lockdowns across the region. However, Apple is only the top of the Iceberg.
As per CNBC CNBC, the demand in China and the U.S. for Chinese manufacturing has dropped by 40%, while the volume of container deliveries has decreased by 21% from August.
RXBAR offers protein bars that are made from whole food ingredients. In 2017 Peter Rahal sold it to Kellogg for 600 million. However, the founder founded the business in 2014 from his parents’ room in Glen Ellyn, a suburb outside of Chicago.
Peter came up with the idea of the RXBAR upon returning from his trip to Belgium. When he returned to his home in the U.S., he noticed that the protein bars used cheap fillers, chocolate compounds, and low-quality ingredients.
So the two of them, along with their childhood acquaintance, Jared Smith, bootstrapped an idea to launch a business selling bars made from eggs, dates, and nuts.
In deciding to avoid small-business loans for small businesses and relying on their cash flow, they raked in 2 million dollars within the first year, using only 10% of their money put into. They had reached $161 million in annual revenues in the fourth year and signed a lucrative contract with Kellogg.