☕️ Oh dear, Google

Why everyone's mad about Google's new ad... August 01, 2024 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [Monogram]( Good morning. Welcome to August, the month of brainstorming clever fantasy football names, Starbucks releasing its PSL before anyone’s ready for it, and celebrating Abby’s and Neal’s birthdays (you can just send our gifts to the office). —Cassandra Cassidy, Molly Liebergall, Matty Merritt, Abby Rubenstein, Neal Freyman MARKETS Nasdaq 17,599.40 +2.64% S&P 5,522.30 +1.58% Dow 40,842.79 +0.24% 10-Year 4.109% -3.0 bps Bitcoin $64,697.72 -2.37% Nvidia $117.02 +12.81% Data is provided by *Stock data as of market close, cryptocurrency data as of 7:00pm ET. [Here's what these numbers mean.]( - Markets: Stocks [leaped up]( in celebration when the Fed held interest rates steady but paved the way to lower them at their next meeting (as expected). - Stock spotlight: Investors may be worried about how much Microsoft is [spending]( on AI, but Nvidia certainly isn’t. The chipmaker’s stock climbed after Microsoft signaled it would keep spending big and rival AMD raised its sales forecast.  TECH [People are mad at Google’s new AI ad]( [Stills from Google’s new Gemini ad]( Francis Scialabba, Photos: Google Google’s newest Gemini ad, “Dear Sydney,” is generating heated backlash on the internet like only a massive tech company’s out-of-touch advertisement can do. Since debuting during the Olympics, it has regenerated the conversation about the role AI will play in our daily lives—and what it could take away. What’s in the ad? It’s [narrated]( from the perspective of the father of a little girl who idolizes the American gold medalist track star Sydney McLaughlin-Levrone. Gemini, Google’s generative AI chatbot, first comes up when the dad searches “how to teach hurdle technique,” and a Gemini-generated list of tips appears. But the part that got everyone talking comes later, when the girl wants to write her hero a fan letter and her dad enlists Gemini’s help, typing, “Gemini, help my daughter write a letter telling Sydney how inspiring she is.” People from all corners of the internet were quick to [criticize]( the ad’s message. On Google-owned YouTube, comments have been turned off. - Some say it showcases lazy parenting and dismisses the daughter’s ability to communicate authentically with someone she looks up to. - Others lament that the ad envisions a world in which basic human skills (like writing) are taken over by AI. A Google spokesperson [said]( the goal of the ad was to “create an authentic story celebrating Team USA” and that it shows the chatbot can provide “a starting point, thought starter, or early draft for someone looking for ideas for their writing.” Sound familiar? The backlash calls to mind the highly criticized ad Apple released in May for the new iPad Pro, which shows a hydraulic press [crushing]( cameras, instruments, and art materials. While not about AI, Apple’s commercial struck a chord with people concerned that the nascent technology could undermine human creativity. Big picture: While tech companies insist that AI’s role will be to take menial tasks off your to-do list, the response to Google’s ad suggests they haven’t managed to get that message across.—CC PRESENTED BY MONOGRAM [8% dividend yield investment opportunity]( [Monogram]( Elite investors often get special deals that aren’t available to the public. Take Warren Buffett, for example. When he invested $10b in Occidental Petroleum, he didn’t buy the publicly traded stock. He got preferred stock paying an 8% dividend. While you won’t be investing alongside Warren Buffett, [Monogram’s currently offering preferred stock with an 8% yield dividend]( (in cash or kind) that’s convertible to its public stock.* Public MGRM shares closed as high as $2.70 in the past week, but the unlisted preferred stock (which is convertible into one share of common) is available for $2.25 per share. [This could be great timing, too]( plans to file for FDA approval to market their robotic surgery tech this year. [Learn more on their website](. WORLD [Tour de headlines](#) [Jerome Powell]Andrew Harnik/Getty Images Jerome Powell says September rate cut could be “on the table.” JPow isn’t known for being direct, but he made an exception yesterday, [saying]( an interest rate cut could come “as soon as the next meeting” in September after the Fed kept rates steady at the two-decade high they’ve been at since last July. “We’re getting closer to the point at which it’ll be appropriate to reduce our policy rate,” he said. “But we’re not quite at that point.” It’s a change from Powell’s other recent statements, which were hazier on the timing, though he did say the decision to cut rates still depends on inflation continuing to cool. Meta’s ad revenue grows alongside AI spending. Meta’s stock jumped after-hours yesterday after the company [reported]( that digital ad sales increased to $39.1 billion last quarter, up 22% from a year prior. This suggests that the company’s heavy investment in AI could be helping to sell personalized ads. But AI remains a major expense: Meta upped its expected capital expenditures for the year from at least $35 billion to at least $37 billion (but kept the top of the range at $40 billion). The Facebook and Instagram parent also said that it expects spending to keep growing in 2025 as it builds out its AI capabilities. Suspected 9/11 plotter agrees to plead guilty. Khalid Sheikh Mohammed and two others currently held in Guantanamo Bay and accused of helping him orchestrate the Sept. 11, 2001, terrorist attacks have agreed to a [plea deal]( that would give them life sentences, according to the Department of Defense. If all goes to plan, the deal will avoid a trial during which prosecutors would have sought the death penalty, but the government would also have had to justify its torture of Guantanamo detainees and potentially faced having some confessions rejected as coerced. AVIATION [Boeing taps a new CEO to correct its course]( [Boeing aircraft]( Cacace/Getty Images Heavy is the head that has to figure out how to make Boeing profitable again. After a monthslong search, the incident-riddled planemaker [announced]( its new CEO yesterday—industry vet Kelly Ortberg, who’s tasked with leading one of the biggest corporate turnarounds in history. The news carried Boeing’s stock by a few points intraday despite the company revealing it finished Q2 $1.44 billion in the red, compared to a $149 million loss a year prior. This brings its total losses since 2020 to nearly $25 billion, the Wall Street Journal [reported](. Amid manufacturing issues, heightened regulatory scrutiny stemming from [doorgate]( and industry-wide supply chain constraints: - Boeing fell short of (already low) expectations last quarter, reporting a 15% overall sales decline and a 32% drop in commercial craft deliveries. - Operations are using up ~$1 billion each month, which executives say will persist through at least this quarter. - The planemaker is losing money on fixed-price contracts and a defense project for Air Force One that’s behind schedule. Good luck, Kelly: Ortberg—who previously helmed a major Boeing supplier—is expected to bring a much-needed outsider perspective to help churn out more 737 Max jets from ~25/month to 38/month by year’s end. Boeing waived its mandatory 65-year-old retirement age to bring in Ortberg and his 64-year-old wisdom.—ML TOGETHER WITH LETSGETCHECKED [LetsGetChecked]( What is Lipoprotein(a)? Lp(a) is a genetically determined, independent risk factor for cardiovascular disease—and knowing your Lp(a) levels can help you reduce your risk. [LetsGetChecked]( Diabetes and Heart Test now screens for Lp(a) to help you gain insight into your heart health + find proactive solutions. [Use code BREW2024 for 25% off](. HARDWARE [Finally, a necklace that texts you]( [AI-powered pendant on necklace.]( They invented a tiny bot to reassure you that no one’s mad at you when you’re too high at Trader Joe’s. It can do other stuff, too, but one can safely assume that will be the main purpose of Friend, the AI pendant that is always listening and sends you texts. The device, [announced]( this week with an [ad]( that the internet immediately [clowned on]( is meant to be worn around your neck like some kind of cursed amulet and features a microphone that is always on but doesn’t store recordings. Its creator, Avi Schiffmann, who raised $2.5 million from investors (including *disclosure time* Morning Brew co-founder and CEO Austin Rief), has described it as an adult Tamagotchi and a way to battle loneliness. - Based on what it overhears, Friend sends you encouraging or playfully teasing texts through its own app, which doesn’t currently charge a subscription fee. - Schiffmann is taking preorders for $99 a pop at friend.com, a domain he claims he paid $1.8 million to secure. Many have tried: Schiffmann says Friend is different from other AI wearables, a category full of massive flops like Humane’s AI pin and the Rabbit R1.—MM STAT [Prime Number: Train travel is so back](#) [People waiting to board Amtrak trains]Kevin Carter/Getty Images Americans seem to be taking their cues from the Quad City DJ’s, because they’re riding the train. Based on Amtrak’s numbers as of June, the national railroad is [poised]( to break its annual ridership record this year, according to the Wall Street Journal. It’s had 24.1 million riders since its fiscal year started in October, 18% more than last year, and every route but two has seen an uptick in passengers. Private trains are thriving, too, as Americans rediscover the joy of riding the rails (and seek to avoid the agony of getting stuck at the airport). High-speed rail operator Brightline, which only has trains in Florida so far, increased its revenue threefold last year, per the WSJ. NEWS [What else is brewing](#) - [Iran’s supreme leader]( Ayatollah Ali Khamenei, has ordered a direct strike on Israel in retaliation for the killing of Hamas political leader Ismail Haniyeh in Iran (which Israel has not confirmed or denied), the NYT reports, as fears of Israel’s assassinations sparking a wider regional war grow. - [Delta’s CEO]( said the CrowdStrike IT outage cost the airline $500 million. The company has reportedly lawyered up to pursue damages. - [Donald Trump]( questioned Kamala Harris’s race while speaking at an event for Black journalists, saying, “I didn’t know she was Black until a number of years ago when she happened to turn Black and now she wants to be known as Black. So, I don’t know, is she Indian or is she Black?” - [Bill Ackman’s firm]( withdrew its planned IPO of a US fund after investor demand fell short of expectations. - [Taco Bell]( plans to expand AI voice technology in drive-thrus to hundreds of its locations this year. - Olympics update: [Katie Ledecky]( won gold in the 1,500-meter freestyle, tying the record for most medals for an American woman in swimming. [Olympic triathletes]( finally dove into the Seine yesterday following days of delay due to [concerns]( about the safety of bacteria levels in the water. [An Italian gymnast]( not only won a silver medal, she also won the internet as a spokesperson for Parmesan cheese. RECS [To do list Thursday] Clear up your misconceptions: A thorough [debunking]( of myths about animals. Make pictures: [This app]( lets you use AI to transform photos of you and your friends. Dine on the breakfast of champions: What Olympic athletes [eat]( after they wake up. Check out a juicy economic indicator: Move over Big Mac, [this index]( notes the price of soup dumplings at Din Tai Fung locations around the globe. Invest in magic + tech: They’re bringing Cinderella, Rapunzel, etc., to life with patented tech. [Invest in Elf Labs and get up to 40% bonus stock]( *A message from our sponsor. GAMES [The puzzle section](#) Brew Mini: Today’s Mini rewards people who can never remember what a thing is called and instead just say, “Hand me that ___.” [Play the thing here](. Three Headlines and a Lie Three of these headlines are real and one is faker than a quick trip to downtown Chicago during Lollapalooza. Can you spot the odd one out? - A United flight [diverted]( after a passenger’s medical issue caused a ‘biohazard’ that made the crew vomit - Why just one venue at the Paris Olympics is [allowed]( to have bees in the walls - ‘9 To 5’ remake [focuses]( on Gen Z versus Boomers in workplace, says Diablo Cody - How the sole white guy on Team Japan’s Olympic basketball team [made]( the cut SHARE THE BREW [Share Morning Brew]( with your friends, acquire free Brew swag, and then acquire more friends as a result of your fresh Brew swag. We’re saying we’ll give you free stuff and more friends if you share a link. One link. Your referral count: 0 [Click to Share]( Or copy & paste your referral link to others: [morningbrew.com/daily/r/?kid=4904f90a]( ANSWER We made up the one about the bees at the Olympics. Word of the Day Today’s Word of the Day is: nascent, which means “coming or having recently come into existence.” Thanks to Christine Margolin from San Leandro, CA, for the brand-new suggestion. Submit another [Word of the Day here](. ✢ A Note From Monogram This is neither an offer to sell, nor a solicitation to buy, any securities. A prospectus supplement and accompanying base prospectus for the Monogram Technologies Series D Preferred Stock offering have been filed with the SEC. Before making any investment, you are urged to read the prospectus supplement and accompanying base prospectus carefully and consult your own advisers for a more complete understanding of the issuer and the offering. ([( Written by [Neal Freyman]( [Abigail Rubenstein]( [Cassandra Cassidy]( [Molly Liebergall]( and [Matty Merritt]( Was this email forwarded to you? Sign up [here](. 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