Alphabet CEO Pichai Warns Employees Of High Stakes 2025: 'We Are Facing Scrutiny Across The World'

At a strategy meeting featuring Alphabet Inc GOOGGOOGL executives, CEO Sundar Pichai addressed key 2025 topics, including artificial intelligence, competition and regulatory pressure.

"The stakes are high," Pichai said at the Dec. 18 gathering, as reported by CNBC. "I think 2025 will be critical. I think it's really important we internalize the urgency of this moment and need to move faster as a company."

Pichai and other Alphabet leaders convened wearing ugly Christmas sweaters. Employees attended in person and watched virtually. CNBC obtained audio of the meeting.

Pichai said the company needs to focus on solving user problems and unlocking the benefits of AI for users. The Mountain View, California-based company also intends to launch several AI features in the first half of 2025, he noted.

The comments come as the Department of Justice pushes Alphabet to divest Google Chrome to end an alleged search monopoly.

"It's not lost on me that we are facing scrutiny across the world,” Pichai said. “It comes with our size and success. It's part of a broader trend where tech is now impacting society at scale. So more than ever, through this moment, we have to make sure we don't get distracted."

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Alphabet's search dominance with its Google brand also faces pressure from generative AI and new competition. Google's Gemini app, which uses AI to provide search results, could be one of the company's biggest focuses for 2025.

Pichai said "building big, new business" was among the top 2025 priorities, which includes the Gemini app.

"With the Gemini app, there is strong momentum, particularly over the last few months," Pichai said. "But we have some work to do in 2025 to close the gap and establish a leadership position there as well."

Pichai compared Gemini to competitors like OpenAI, acknowledging that the company is playing catch-up on several AI fronts.

"In history, you don't always need to be first, but you have to execute well and really be the best in class as a product. I think that's what 2025 is all about."

Pichai also asked for more scrappiness from the company's more than 180,000 employees.

"In early Google days, you look at how the founders built our data centers, they were really really scrappy in every decision they made. Often, constraints lead to creativity. Not all problems are always solved by headcount."

Price Action: Alphabet stock is down 1% to $192.15 on Monday versus a 52-week trading range of $131.55 to $202.88. Alphabet stock is up 37.6% year-to-date in 2024.

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