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| Here’s a look at today's tech briefing: - Google to roll out AI search answers to all U.S. users.
- Biden raises tariffs on some Chinese imports.
- AWS CEO steps down.
- Comcast to offer Peacock, Netflix, Apple TV+ bundle.
- Two U.S. lawmakers seek to sunset Section 230.
- Sony PS5 sales expected to fall.
Beth
p/beth-duckett | |
| 1 | | Google will roll out an AI-powered search experience to all U.S. users this week. Previously in testing for a year, the AI feature summarizes web results into multiple paragraphs, rather than showing only links or site snippets at the top of search results. Google announced the rollout alongside other AI features at Tuesday's I/O developer conference. More: - Google's chatbot-based search delivers "AI overviews," or summarized web results, in response to user queries.
- AI overviews will only appear when Google's tech deems them the fastest and most effective response for complex queries.
- For simpler searches, users will continue to see Google's standard ranked web links.
- While publishers worry the custom AI answers will lead to fewer website visits, Google said its tests show users are more likely to click on sites.
- By year's end, Google expects the AI overviews to reach about 1 billion users globally.
Other I/O announcements: - Google debuted a prototype AI agent "Project Astra." The early version of a universal assistant answers real-time questions via text, video, and audio.
- Its latest video-generating AI, Veo, produces high-quality 1080p videos over a minute long in different styles.
- Google launched an upgraded version of Gemini, its flagship AI model, to developers and paid customers.
- The company is testing a feature to warn Android users of potential phone scams.
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| 2 | | The Biden administration announced major tariff hikes on $18B worth of Chinese imports, including electric vehicles, semiconductors, batteries, and solar cells. The White House said the tariff increases would protect U.S. industries from inexpensive imports and unfair competition. More: - Biden will maintain Trump-era tariffs on $300B of Chinese imports while increasing others.
- For EVs, the tariff rate will increase from 25% to 100% this year — a move designed to protect U.S. manufacturers.
- Tariffs for semiconductors and solar cells will rise from 25% to 50%, while lithium-ion EV batteries will go from 7.5% to 25%.
- Additional tariffs will target Chinese imports of medical needles, syringes, and steel and aluminum products.
Zoom out: - China demanded the U.S. revoke the tariffs and vowed to take firm measures to protect its interests.
- In 2023, the U.S. imported $427B and exported $148B of goods to China.
- Biden officials claim the tariffs won't increase U.S. inflation due to the small volume of targeted goods.
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| 3 | | Amazon Web Services CEO Adam Selipsky will step down in June, to be replaced by Matt Garman, AWS's SVP of sales and marketing. Selipsy was CEO of Tableau before returning to lead AWS in 2021, replacing Andy Jassy who became Amazon's CEO. More: - In a memo, Jassy wrote that Selipsky has "deftly led the business" and Garman has "an unusually strong set of skills and experiences for his new role."
- Garman began as an Amazon intern in 2005 and has been with AWS for nearly 18 years.
- Selipsky's plans are unclear. In a statement, he said he was taking the opportunity to "spend more time with family" and "recharge."
Zoom out: - AWS experienced rapid growth under Selipsky.
- The cloud-computing unit generated 17% of Amazon's revenue and 62% of its operating income in Q1, making it one of its most profitable units.
- AWS is also accelerating its AI services to catch up with Microsoft and Google.
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| 4 | | Comcast will offer a discounted streaming bundle combining Peacock, Netflix, and Apple TV+. The StreamSaver bundle will launch to Comcast's cable, internet, and mobile subscribers later this month. More: - Comcast didn't specify pricing, though it said the bundle will have a "vastly reduced price" compared to competitors.
- Individually, Netflix plans start at $6.99 a month and Apple TV+ is $9.99 per month.
- Peacock subscriptions start at $5.99 but will rise to $7.99 a month this summer.
- Comcast's bundle could bolster its pay-TV base after it lost 487,000 cable customers in Q1.
Zoom out: - Streaming packages are emerging as a popular trend to attract and retain subscribers.
- Disney and Warner Bros. Discovery will offer a bundle with Disney+, Hulu, and Max in the U.S. starting this summer.
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| 5 | | Two U.S. Congress members are seeking to sunset Section 230 of the Communications Decency Act. Section 230, enacted in 1996, shields tech and social media platforms from legal liability for user-posted content. More: - House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and ranking member Frank Pallone, Jr. (D-NJ), proposed a draft bill that would make Section 230 ineffective by Dec. 31, 2025.
- The legislation would require tech companies to work with Congress to develop and deploy a new legal framework to replace Section 230.
- In an op-ed for The Wall Street Journal, the lawmakers argued that Section 230 was "an overwhelming success" but has "outlived its usefulness."
- They claim tech companies now use the law to avoid accountability for harmful content that hurts Americans, particularly children.
Zoom out: - Two U.S. Senators introduced a bill last year to restrict tech companies' legal immunity under Section 230, but it stalled after Sen. Ron Wyden (D-OR) blocked it earlier this year.
- Wyden, an original co-author of Section 230, argues that removing it would suppress online speech and lead to more censorship by social media companies.
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| 6 | | Sony forecasts PlayStation 5 sales will fall to 18 million this fiscal year, down from last year's high of 20.8 million. The aging console is expected to see declining sales in the latter half of its life cycle, though Sony may see a sales boost from the updated PS5 Pro launch this holiday season. 
More: PS5 sales, which began in 2020, fell 29% in the recent quarter and are unlikely to surpass PS4 sales. Analysts suggest the console's reputation may have been damaged by PlayStation's layoffs in February. Still: Sony says PlayStation platform revenue could still grow through user growth, engagement, and cost control, even as revenues from PS5 decline. Sony has now appointed co-CEOs to lead its PlayStation business after its boss Jim Ryan retired. The bigger picture: The gaming console market, including both Microsoft's Xbox and PlayStation, is struggling. Xbox recently reported a 31% drop in Xbox hardware sales year-over-year. Sony continues to sell more PS5s than Microsoft, which is expanding more into mobile gaming. | | | |
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 | AI and technology writer | | Beth is a contributing editor and writer of Inside's AI and Tech newsletters. She has written for publications including USA Today, the Arizona Business Gazette, and The Arizona Republic, where she received recognition with a Pulitzer Prize nomination and a First Amendment Award for collaborative reporting on state pension cost increases. You can reach her at Beth.Duckett@yahoo.com. | | This newsletter was edited by Beth Duckett | |
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