Google’s CEO, Sundar Pichai, emphasized to employees last week that 2025 will be a pivotal year for the company, as it faces rising competition, growing regulatory scrutiny, and the rapid evolution of artificial intelligence (AI). During a strategy meeting on December 18, Pichai addressed employees, urging them to prepare for the challenges ahead and to focus on AI advancements.
“I believe 2025 will be a critical year,” Pichai said. “It’s vital that we internalize the urgency of this moment and accelerate our efforts. The stakes are high, and we need to be relentless in harnessing the potential of AI to solve real user problems.”
Employees gathered at Google’s headquarters in Mountain View, California, along with virtual attendees, heard Pichai speak about the competitive and regulatory landscape Google is navigating. The company has experienced some of the most intense pressure in its two-decade history, as it contends with increasing competition in its core markets and faces regulatory challenges. While Google’s search ads and cloud businesses showed strong growth, concerns about company culture and Pichai’s long-term vision for the future were also raised internally.
Adding to the pressure, regulation has become a significant concern. In August, a U.S. federal judge ruled that Google holds an illegal monopoly in search, while the Justice Department is also pushing for Google to divest its Chrome browser unit. The company faces additional challenges, including a trial over its dominance in online ad technology, and in September, the UK’s competition watchdog scrutinized Google’s advertising practices.
Pichai acknowledged these external pressures, stating, “It’s not lost on me that we’re under global scrutiny. It’s a byproduct of our size and success, but more importantly, it reflects the broader trend where tech is impacting society on a massive scale. We can’t afford to be distracted by it.”
While Google maintains dominance in the search market, the rise of generative AI has introduced new competitors, creating fresh ways for people to access information. OpenAI, with its popular ChatGPT, has captured attention since late 2022, attracting major investors like Microsoft, and launching its own search engine in 2023. Another competitor, Perplexity, raised $500 million in 2024 and is valued at $9 billion.
To stay ahead, Google is betting on its AI model, Gemini. The company sees the Gemini app as essential to its future, with plans to scale it into a tool that could reach half a billion users. “Gemini is showing great momentum, especially in recent months,” Pichai said. “But we still have work to do in 2025 to close the gap and lead the industry in this space.”
Pichai highlighted that scaling Gemini for consumers will be one of the company’s primary objectives for the year ahead. He also discussed the competitive landscape, showing a chart that places Gemini 1.5 ahead of OpenAI’s GPT in large language model capabilities. “There will be back-and-forth competition, but I believe we’ll be state of the art,” Pichai said.
He acknowledged that, while Google has had to play catch-up, success doesn’t always require being the first to market. “In history, it’s not about being first, but about executing well and creating the best product. That’s what 2025 is about.”
During the meeting, Pichai addressed questions submitted by employees. One question noted that ChatGPT is becoming synonymous with AI in the same way Google is associated with search, prompting inquiries about Google’s strategy to compete. In response, DeepMind co-founder Demis Hassabis shared plans to “turbocharge” the Gemini app, noting its rapid user growth since launch. He described the future vision of a universal assistant capable of operating seamlessly across devices and domains.
Hassabis also addressed concerns about AI product pricing, emphasizing that there are no current plans to introduce high-cost subscription models. “We believe our $20 per month for Gemini advanced is a great value,” he said.
Later, Josh Woodward, head of Google Labs, energized the room with six fast-paced demos. These included Jules, a coding assistant in testing, and NotebookLM, an AI-powered notetaking tool with podcasting features. The team also showcased Project Mariner, an AI-driven multitasking extension for Chrome, which garnered applause when a demo successfully added restaurant recommendations from Tripadvisor to Google Maps.
Throughout the meeting, Pichai reminded employees to remain “scrappy,” reflecting on Google’s history of making creative, cost-effective decisions. “In the early days, when Larry and Sergey built our data centers, they were incredibly scrappy. Constraints often lead to creativity, and not all problems are solved by increasing headcount,” Pichai said.
As Google continues to face mounting challenges, it is clear that 2025 will require focused efforts, innovation, and the ability to adapt rapidly to new technologies and competitive dynamics.
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