Google I/O 2026: Their Next Big Thing Is Finally Here

Google I/O 2026 was packed full of announcements, but we need to determine whether the company is keeping pace with OpenAI and Anthropic. 

We cover Gemini Omni, Gemini 3.5 Flash, and Gemini Spark, along with Google’s updates to Search, YouTube Search, and its new AI glasses. Let's  examine Google’s broader product strategy and see if it merits its spot as one of the largest companies in the world.

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TIMESTAMPS

0:00 Google i/o
1:00 Omni’s World Model
3:24 Gemini Flash
13:48 Gemini Spark
17:12 AI Search
19:49 Google AI Pro
21:24 AI Strategy Dilemma
23:58 Glasses and Hardware
26:37 Closing

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RESOURCES

Josh: https://x.com/JoshKale

Ejaaz: https://x.com/cryptopunk7213

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Not financial or tax advice. See our investment disclosures here:
https://www.bankless.com/disclosures⁠

Creators and Guests

Host

Ejaaz Ahamadeen

Host

Josh Kale

What is Limitless: An AI Podcast?

Exploring the frontiers of Technology and AI

Josh:
The CEO of Google just got on stage yesterday and told everyone that there's no new Frontier model.

Josh:
In fact, he said they've only made it 90% of the way there. So on the surface,

Josh:
this seems fairly disappointing given the fact that it's been many months since

Josh:
our last model release and Gemini was doing pretty great.

Josh:
So while he didn't claim they had the lead, they did proceed to release new

Josh:
models in nearly every single product we use every day and in some pretty creative ways.

Josh:
I mean, three of the highlights are a brand new model that's pretty prevalent

Josh:
throughout all the software we use, an OpenClaw competitor that is built right

Josh:
into Google, and this new model named Omni.

Josh:
And that's where we're going to start today, because Omni is nothing like we've

Josh:
ever seen in the world of AI before.

Josh:
Omni is a pretty impressive model, and I think probably the highlight of this

Josh:
event. So, Ijaz, what's going on with Omni?

Ejaaz:
So they had this really cool moment during IO where they just started showing

Ejaaz:
this announcement video.

Ejaaz:
And people were kind of looking at this and were like, oh, some of this looks

Ejaaz:
AI generated, but some of this actually looks quite realistic.

Ejaaz:
And the reason was they released this brand new model called Gemini Omni.

Ejaaz:
Now, it's a very unique model. It's

Ejaaz:
not something that we have seen before because it's a hybrid of an LLM,

Ejaaz:
and a world model. And world models, if you've heard that term before,

Ejaaz:
is really unique because it can produce video that not only looks realistic,

Ejaaz:
but is physically accurate.

Ejaaz:
So something that LLMs struggle with, it's like that analogy we've used before,

Ejaaz:
Josh, where you have a student in a library that's read all of the books and

Ejaaz:
understands the world, but actually has never stepped outside of the library

Ejaaz:
and experienced the world for himself.

Ejaaz:
World models are basically an upgrade from LLMs where it can teach the LLM to

Ejaaz:
understand how the world works, the consequence of an action.

Ejaaz:
So say if you like hit something or if you jump how gravity works and all those kinds of things.

Ejaaz:
So the unique thing about this model is it can take any input medium.

Ejaaz:
So we're talking about words, we're talking about images, we're talking about

Ejaaz:
video itself and it spits out only one output, which is video.

Ejaaz:
Now the videos that you're seeing on screen here is physically accurate.

Ejaaz:
Now, obviously, it's generated by AI, but the vortex that you're seeing on your

Ejaaz:
screen now, the way that the person draws a circle,

Ejaaz:
the way that the paper kind of crinkles is basically all meant to be physically accurate.

Ejaaz:
And the reason why this is such a powerful model is, well, there's a few.

Ejaaz:
Number one, when you're learning about something, the number one medium that

Ejaaz:
people or humans ingest information is through video. Words is actually kind

Ejaaz:
of slow. It takes a while to kind of like go from left to right.

Ejaaz:
People don't like read all the time in today's world, but they do watch videos.

Ejaaz:
There's several different sensory instruments that come in. There's sound, there's like visuals.

Ejaaz:
You kind of like ingest data way quicker with video, and that's the bet that

Ejaaz:
Google was making with this.

Ejaaz:
And the second thing I'm going to say is, this is pretty world-changing for

Ejaaz:
a lot of different applications outside of just LLM.

Ejaaz:
So, for example, Google has been a massive proponent of robotics.

Ejaaz:
The issue with robotics is, these robots don't understand the real world.

Ejaaz:
And so far, all the robot models have been fed with words about how the real world works.

Ejaaz:
Well, what if you could place that robot brain into a simulation that is physically

Ejaaz:
accurate, like a world model, And you can start teaching people or robots specifically

Ejaaz:
how to interact and they can train and learn a lot faster.

Ejaaz:
So I just think there's many different applications for what this world model is.

Ejaaz:
And it's the first mass scale deployed one. So I'm excited to get my hands on this personally.

Josh:
Yeah, and it's available today live for basically anyone who uses Gemini.

Josh:
It's available in the Gemini app, and it's pretty cool. One of the things that

Josh:
I've enjoyed personally is that you can create an avatar of yourself.

Josh:
So you can actually build a digital clone of yourself and inject it into these.

Josh:
You could think of this model sort of like Nano Banana, but for video,

Josh:
where for the first time ever, you can really create fully custom videos that

Josh:
either take base reality and build something on top of it, or just create a

Josh:
total AI demo in general.

Josh:
So we have this pretty cool demo from the CEO of DeepMind, Demis Hissabas,

Josh:
which show you kind of how this works, where it takes his actual video that

Josh:
was recorded on his camera roll and then turns it into five different scenes

Josh:
that are all completely unique, seeming somewhat realistic.

Josh:
And I think this combines the fidelity of something like Nano Banana with the

Josh:
complexity and physics understanding of VO3. And that's where it really shines.

Josh:
What's also really fun is you have the ability to refine these things too.

Josh:
So you can actually tweak the model, tweak the outputs.

Josh:
And the result of this is something fairly comprehensive, particularly if you're

Josh:
trying to learn things. I find that education is probably one of the most interesting

Josh:
demos and use cases of this.

Josh:
And we have one, which is prompted from a single question of how does photosynthesis work?

Josh:
And now as a student of anything, as someone who's trying to learn,

Josh:
you're given this fairly comprehensive answer that starts with an image.

Josh:
The image is generated by Nano Banana, and then it gives you the chemical recipe.

Josh:
And then under this how it unfolds section, we actually get a fully generated

Josh:
video from the new Omni model that shows you a like actual visual representation

Josh:
full of graphs and charts and seemingly realistic

Josh:
version and an easy way to learn how this works.

Josh:
So I think this is probably the one of the most powerful use cases if you're

Josh:
a teacher, if you're a student, if you're someone who's just curious about any

Josh:
topic and your preferred way of learning is visually, this is a really compelling

Josh:
product for you. Now this also works...

Josh:
With real videos that you could just upload to Gemini. We did this this morning.

Josh:
I had this video on my camera roll that was just filmed outside of a window.

Josh:
And the prompt was just, hey, make some meteors fall down from the sky and put

Josh:
the Loctis monster in the East River.

Josh:
And the reality was this output, which looks pretty good.

Josh:
I mean, if you're looking at this, you'll notice their sound.

Josh:
You can hear the ambient sound of the city.

Josh:
There's a large splash when the dinosaur or the loctus monster hits the water.

Josh:
It looks pretty good, but also this is very clearly AI generated.

Josh:
It feels like CGI from perhaps the early 2000s. So not quite what we would expect

Josh:
in 2026, but very cool nonetheless that it can actually take one of your videos

Josh:
and generate something pretty powerful on top of it.

Ejaaz:
So if you listen to this, you're probably wondering, like, how can I use this?

Ejaaz:
Why is this applicable to me?

Ejaaz:
Well, if you're just a regular person that kind of wants to play around with

Ejaaz:
video, So this is plugged or integrated right into YouTube Shorts.

Ejaaz:
About two months ago, Google made a very important decision,

Ejaaz:
which is integrating AI into their major video platform, YouTube.

Ejaaz:
A lot of people had mixed feelings about this. Artists in general in the creative

Ejaaz:
world tend to hate on a lot of different AI tools.

Ejaaz:
Google takes a different approach where they're saying the kind of like proactive

Ejaaz:
efforts that a lot of artists are making.

Ejaaz:
If they can produce more content that is applicable to various different niches

Ejaaz:
of audiences, then you can kind of like create a sustainable platform.

Ejaaz:
They see the number one distribution for this being YouTube Shorts.

Ejaaz:
So this is plugged into YouTube Shorts right now.

Ejaaz:
You can go out there, create an eight second video and show us what you've got

Ejaaz:
if you actually listen to this and you have an account, like we would love to see it.

Ejaaz:
I will say that these things do look quite janky right now, as you mentioned,

Ejaaz:
Josh, but this is also V1.

Ejaaz:
And it's important to stress that world models up until now weren't really applicable

Ejaaz:
or distributed to a mass audience.

Ejaaz:
If you remember, Google released, I think it was Genie 3, which is like their

Ejaaz:
really powerful world model.

Ejaaz:
That is what powers this model that you're seeing on your screen here today.

Ejaaz:
But it's not a full implementation. Why?

Ejaaz:
Because it's actually quite expensive to serve.

Ejaaz:
It requires a different type of infrastructure to train.

Ejaaz:
And so once that kind of scales up with Google, they'll be the first distributors of this.

Ejaaz:
And I'm excited to see more of this because Demis at Davos earlier this year

Ejaaz:
basically said that he thinks world models is the future evolution of LLMs. He thinks that words are.

Ejaaz:
Ultimately constraining for AI models. And in the future, if you have a model

Ejaaz:
that can speak, but also understand how the world works, that will be the all-consuming model.

Ejaaz:
Now, of course, that's in the future.

Ejaaz:
For now, we have to focus on the major frontrunners of AI, which is Anthropic

Ejaaz:
and OpenAI, which have the world's leading LLM.

Ejaaz:
So the question becomes, did Google release an amazing LLM.

Ejaaz:
Although they did release an LLM, it's called Gemini 3.5 Flash.

Ejaaz:
And to quote Logan over here, it's their most powerful model to date.

Ejaaz:
Now, it pushes the frontier in many different ways. We've got a chart here which

Ejaaz:
kind of like compares Gemini 3.5 Flash to the older Gemini Flash models,

Ejaaz:
as well as Opus 4.7 from Anthropic and GPT 5.5 from OpenAI.

Ejaaz:
And you'll notice that Across coding in general, it doesn't trump or beat GPT

Ejaaz:
5.5 or Opus 4.7, which I guess some might say is a little disappointing, but also unsurprising.

Ejaaz:
Google has fallen behind in coding AI for a while. So it's not as good,

Ejaaz:
but it's kind of near the marker of them.

Ejaaz:
But if you look just below here, this is where this bottle actually excels.

Ejaaz:
It's known as agentic tooling or agentic AI in general.

Ejaaz:
What Google has been able to achieve with 3.5 Flash is the ability to spin up

Ejaaz:
multiple sub-agents that work in parallel to get your prompt resolved.

Ejaaz:
So if you think that like having one singular brain to do all the work for you

Ejaaz:
really, really well, which is what Claude Opus 4.7 does, which is what GPT 5.5

Ejaaz:
does, Google took a different approach and said, let me have multiple brains,

Ejaaz:
maybe even hundreds of brains working on the same problem and collectively,

Ejaaz:
they can produce a better answer.

Ejaaz:
And that's what they've achieved with the Gentic tooling here where you've got

Ejaaz:
the tool-a-thon and the MCPP Atlas benchmarks, which absolutely crushed GPT 5.5 and called Opus 4.7.

Ejaaz:
So you're probably wondering, okay, well, what tasks can I use this for?

Ejaaz:
It's typically long horizon tasks, like long tasks that you can kind of shut

Ejaaz:
your laptop down and kind of let it work away for like 10 to 20 hours this is the model for you.

Josh:
So you'll note that they said that it is their best model

Josh:
ever not the best model ever and that

Josh:
it is fast but it is not the fastest and that

Josh:
it is affordable but it is not the most affordable and when

Josh:
you're kind of observing the parameters on the Pareto Frontier the things

Josh:
that we actually measure to evaluate a model it's not

Josh:
really the best at anything and in fact

Josh:
we have this kind of comparison that I saw with Cerebris which

Josh:
I really enjoyed and Cerebris posts this kind of trolling them which

Josh:
is Cerebris versus Gemini flash and it very

Josh:
clearly shows where cerebris sits versus flash

Josh:
you could see 3.5 flashes out pretty fast in terms

Josh:
of the tokens per second output but when you're trying to

Josh:
optimize for one of these things along the frontier clearly cerebris has the

Josh:
speed thing completed so it's not the fastest by a large margin it's not the

Josh:
smartest by a pretty large margin it sits kind of in the middle and i think

Josh:
this is the most interesting part of this story today is that a lot of these

Josh:
models are not the best but they are unique in their own way one of the cool demos that

Josh:
I liked that they had mentioned during the presentation is that they actually

Josh:
took this new Gemini 3.5 flash model to build an operating system from scratch

Josh:
over the course of a series of hours.

Josh:
I mean, that's pretty incredible. It says it took 12 hours, 93 parallel agents,

Josh:
15,000 plus model requests, and then $2.6 billion in tokens process.

Josh:
So you are essentially able to build an entirely new operating system from scratch

Josh:
for less than $1,000 in API credits. That is pretty phenomenal.

Ejaaz:
That's actually super hard to do. Do you remember we, I think, who did it?

Ejaaz:
I think it might've been a GPT 5.4. It was, it was GPT 5.4.

Ejaaz:
And Sam posted this video of a team building an OS from scratch.

Ejaaz:
And that took them, I believe, 36 hours, like over a day.

Ejaaz:
Like in that time, so I think that was like two and a half months ago.

Ejaaz:
You now have Gemini Flash 3.5, which isn't as good a model as GPT 5.5.

Ejaaz:
Do this in a fraction of the time by creating this novel approach of spinning

Ejaaz:
up almost 100 agents to do that.

Ejaaz:
Josh, I had a comment on the speed thing here because you're right.

Ejaaz:
Cerebrus that runs GPT 5.5 versus Google is not just a question of speed.

Ejaaz:
It's a question of infrastructure.

Ejaaz:
Now, I have a demo here which shows actually how quick Gemini Flash can be.

Ejaaz:
And to be honest, I just want to start this from the start. Look at this.

Ejaaz:
That's crazy my brain can't ingest that

Ejaaz:
much information in real time and i think although

Ejaaz:
it's not as fast as some of these other new chip architectures it's still good

Ejaaz:
enough for the majority of humans for sure right the other thing i'll say is

Ejaaz:
this is built off of google's latest gpu infrastructure known as the tpu v8

Ejaaz:
specifically the 8i which stands for eight inference it's inferencing chip,

Ejaaz:
which basically is specialized around

Ejaaz:
giving you quicker responses to your prompts. Now, that being said...

Ejaaz:
This is incredibly expensive. Demis Hassabis dropped some stats here where he

Ejaaz:
kind of shows off the speed.

Ejaaz:
He says it's 4x faster than any of the other Frontier models.

Ejaaz:
And actually, if you use our IDE environment, which is basically Google's equivalent

Ejaaz:
of cursor, it performs 12x faster.

Ejaaz:
What he doesn't mention is it's four times more expensive than all the other Frontier models.

Ejaaz:
So there's a trade-off here, right? I think you mentioned it before we started recording, Josh.

Ejaaz:
There's a trade-off. If speed is something that you necessarily need,

Ejaaz:
which you could very well want in financial services where you're like trading

Ejaaz:
algos for whatever, speed becomes a necessity.

Ejaaz:
You're willing to pay that premium because you end up making more money on the top end.

Ejaaz:
That's completely fine. But for the majority of users where speed doesn't necessarily

Ejaaz:
matter that much, but thought and intelligence matters more,

Ejaaz:
you want to make sure that that cost per watt per intelligence or whatever that unit might be,

Ejaaz:
is kind of like kept at a certain bracket. Like I watched an episode where they

Ejaaz:
interviewed the CFO of Anthropic and he mentioned that these enterprises are

Ejaaz:
spending like 100%, sorry,

Ejaaz:
500% more than the initial budget that they had at the start of the year by the end of the year.

Ejaaz:
So the point is like people are spending a lot of money on this.

Ejaaz:
And at some point we need to kind of like reduce budgets to an extent.

Ejaaz:
So yeah, it's quite expensive.

Josh:
All right, who's an OpenClaw fan who's listening? Or who has given up on OpenClaw?

Josh:
Because if you are a current OpenClaw user, you're probably going to hate this.

Josh:
But if you've never used it before, this is a pretty compelling product.

Josh:
And it's called Gemini Spark.

Josh:
This is the third major announcement that they made.

Josh:
And Gemini Spark is fascinating because it is that 24-7 personal agent.

Josh:
They're claiming that it helps you navigate your digital life,

Josh:
taking actions on your behalf and under your direction.

Josh:
Essentially, this is Google's answer to OpenClaw. This is their version of the 24-7 agent.

Josh:
And the reason why I said you may hate this is because you are beholden to Gemini 3.5.

Josh:
Now, one of the best things about OpenClaw or if you use Hermes is it's model

Josh:
agnostic. you could choose models that you want to use, and it will go and tackle specific tasks.

Josh:
In this case, on Gemini Spark, you're stuck with 3.5.

Josh:
So is this good? Is this bad? We'll see, but I find it really interesting because

Josh:
this just runs directly in your browser.

Josh:
So you don't actually need to have a laptop open. You don't need to run this on a remote server.

Josh:
All you need to do is log into your Google account, set up a Gemini Spark instance,

Josh:
and then it will just run permanently in the cloud.

Josh:
A lot of times you'll see there's memes going around to people who are walking

Josh:
around with their laptops cracked open because they're running these agents

Josh:
that are running long-term tasks.

Josh:
This is basically your own little private server to go off and build anything that you want.

Josh:
And it's pretty interesting. I think for people who are less technical or for

Josh:
people who just don't love using OpenClaw, this is a pretty easy way of accessing

Josh:
a 24-7 server to just run commands, to run prompts over very long durations of time.

Ejaaz:
I like this and I hate this. The reason why I like this is I use a lot of Google

Ejaaz:
products to do work, Google Docs, Sheets,

Ejaaz:
Gmail. So the fact that I can have an OpenClaw that is seamlessly integrated

Ejaaz:
into all of those things gives me hope.

Ejaaz:
The other side of this is I just don't think it's going to be as good a quality

Ejaaz:
product as OpenClaw or Clawed Cowork.

Ejaaz:
In fact, there was news that broke, what was it, like a couple of weeks ago,

Ejaaz:
that revealed that majority of Google employees were using Clawed to do their work, right?

Ejaaz:
And then Google kind of like put a ban on this. And the reason why they were

Ejaaz:
doing this was presumably to learn how to build a better agentic or coding model

Ejaaz:
that can do exactly what we're seeing on the screen here.

Ejaaz:
So they're late. They're lagging the front runners. I'm glad they put something

Ejaaz:
out there. Google Desk has the distribution.

Ejaaz:
They do have the data mode. They do have all the users.

Ejaaz:
For now. And so I think they have a shot at creating something good here.

Ejaaz:
But I get meta vibes from this, Josh, like the same reason why like meta might

Ejaaz:
have like a good model with Muse Spark.

Ejaaz:
I'm not using it because it's not on the platforms that I actually want to use the thing.

Josh:
Yeah, and I think that's one of the trends of all the announcers that we're talking about today.

Josh:
They are all kind of existing in seemingly different places.

Josh:
It's not clear and obvious which features I'll want to use. We're

Josh:
about to rattle off maybe five or six more things that they've announced

Josh:
and i think one of the themes as i i mean this is

Josh:
a common complaint that we've had with google or at least me personally is

Josh:
i'm not really sure the best way to use all of these

Josh:
tools like with anthropic i go to the claw desktop app

Josh:
and it has everything in one roof and i know exactly how it all works with open

Josh:
ai the same thing is true and i even have a companion mobile app with google

Josh:
there's a lot of this kind of ambient ai that exists at the seemingly random

Josh:
series of touch points like it exists in my gmail but i kind of hate the ai

Josh:
written emails that it makes.

Josh:
It exists in my Google Drive, but I don't really need it there.

Josh:
And then you have the Gemini app, which is getting better, but it still doesn't

Josh:
include a lot of the functionality that we're mentioning today.

Josh:
I mean, the next thing we could talk about here is their search,

Josh:
because for the first time in over 25 years, they're really changing how search is going to work.

Josh:
And again, it's just kind of like this ambient AI that you don't really seek out.

Josh:
I'm not really sure where to find all that a little confusing.

Josh:
But in terms of the AI search, it's very different.

Josh:
Now Google search has gemini 3.5 flash

Josh:
baked into it by default so when

Josh:
you search for something it will be routed through gemini 3.5

Josh:
instead of the traditional google search engine and this is a pretty profound shift

Josh:
in just the way the internet works the way people get information on the internet

Josh:
the first person i think about is the sites that are kind of optimizing for

Josh:
seo on google now it seems like the whole meta has shifted to seo for ai models

Josh:
because now when you search something the reality is is that you're going to

Josh:
be routed through an ai model and not the

Josh:
indexing algorithm, at least for now.

Ejaaz:
So one thing a lot of critics on Wall Street said about Google three months

Ejaaz:
ago was that they're worried about AI eating their dominant market share in search.

Ejaaz:
And then they released their Q1 earnings about a week ago, and it revealed that

Ejaaz:
not only did it not eat their search market share, it increased it.

Ejaaz:
They ended up earning more money. And I think that's because,

Ejaaz:
Google Search has been integrating AI for a while now. This isn't the first

Ejaaz:
time that I type something in Google and it gives me an AI-generated prompt.

Ejaaz:
I love that we have the latest model here and that they're making it more native into the homepage.

Ejaaz:
I think this is amazing. So this is my second favorite release from Google, from I.O.

Ejaaz:
Hundreds of millions of people, probably even billions of people,

Ejaaz:
use Google every single day. They ask a bunch of different random questions.

Ejaaz:
I would actually argue that it has more reach than your ChatGPT home interface

Ejaaz:
or Claude home interface.

Ejaaz:
And if Google is able to successfully pivot this into something that serves

Ejaaz:
up their latest LLM prompts and somehow get people to use or pay for it,

Ejaaz:
then this could end up being a home run.

Ejaaz:
Of course, as you mentioned earlier, like Google is like free at this point,

Ejaaz:
right? The whole point is like distribution is the mode.

Ejaaz:
And so I think they're going to end up making most of their money from this

Ejaaz:
particular feature through ads.

Ejaaz:
Now, it's important to say that no AI company right now has figured out the

Ejaaz:
SEO strategy. In fact, the leader of this is Meta.

Ejaaz:
Who has been embedding a bunch of AI agents and models into their ad services

Ejaaz:
on the backend to help advertisers reach more of a wider audience.

Ejaaz:
If anyone knows the data of their users, the best is definitely Meta.

Ejaaz:
They've been training on this for a while.

Ejaaz:
Their new model, MuseSpark, does exactly this. I have a feeling Google's going

Ejaaz:
to go down the same route, but they're going to be a little more careful about

Ejaaz:
this because they are the dominant market platform for advertising.

Ejaaz:
So I'm excited to see where this goes from here.

Ejaaz:
And then there was this other post, which you were commenting on,

Ejaaz:
Josh, which is basically like, you get like such good value for money with a google ai pro bundle.

Josh:
This is my new favorite subscription for twenty dollars it comes

Josh:
with youtube premium light which doesn't include music videos but basically

Josh:
an ad-free experience on youtube in addition to five terabytes of storage you

Josh:
get access to all the new gemini pro models it has image video generation access

Josh:
anti-gravity notebook lm pro which is really good for deep research and long

Josh:
context stuff It's a really compelling bundle at $20.

Josh:
And I think this is one of the most understated

Josh:
things that was released yesterday,

Josh:
because this is what I would probably recommend most people use.

Josh:
It gives you access to the entire suite. And even if you just watch YouTube

Josh:
videos, I mean, you get access to the ad-free version of that.

Josh:
And that alone makes it worth it with the five terabytes of storage.

Josh:
So very compelling value coming out of them.

Josh:
And speaking of YouTube, they also did the same search thing that they did with

Josh:
Google on YouTube as well, where now there's AI search baked right into your search results.

Josh:
It turns out that Gemini has been trained on lots of youtube

Josh:
data and actually has context on the types of

Josh:
videos that you want to watch so

Josh:
if you ask a question about a specific thing that you

Josh:
want troubleshot it will not only find the right videos for

Josh:
you but it will find the correct moments in the videos and

Josh:
serve those up to you and i find that we've started to experience this in google

Josh:
search recently where like i can type something it'll kind of time stamp me

Josh:
into a video now it's fully baked into the youtube experience and i think that's

Josh:
going to be a really compelling product as well so google in terms of upgrading

Josh:
their core products that everyone uses on a day-to-day basis looking really strong.

Ejaaz:
For this final section, Josh, I want us to zoom out because the question that

Ejaaz:
I have on my mind is Google has a decision to make on which strategy they want to pursue for AI.

Ejaaz:
Right now, OpenAI has made it very clear they want to catch up with Anthropic

Ejaaz:
on coding. And in fact, you could argue that they have done that.

Ejaaz:
Anthropic focused on coding for the longest time. And the reason why both of

Ejaaz:
those companies are doing that is they believe if they nail or coding AI,

Ejaaz:
then they can build everything else.

Ejaaz:
Everything else becomes downstream of coding AI, right? There's an argument there.

Ejaaz:
Now, Google, with this latest launch or series of launches.

Ejaaz:
Hasn't really made that explicit statement as well. In fact,

Ejaaz:
I think they're making a few other statements.

Ejaaz:
Number one, they're betting that video or Omni models are going to be the future.

Ejaaz:
That's why they spent a lot of compute and time invested in their new Gemini

Ejaaz:
Omni intelligence model.

Ejaaz:
Number two, I think that Google is realizing that the agent harness or the harness

Ejaaz:
that goes around And an AI model is equally as important as the fundamental

Ejaaz:
foundation model itself. Now, I have proof of this.

Ejaaz:
There was this tweet that I saw yesterday, which on Cursor, you can measure

Ejaaz:
the intelligence of different models across different tasks.

Ejaaz:
And it showed that the recent Gemini 3.5 flash was worse than Cursor's own foundational

Ejaaz:
model, the old version of it, Composer 2.0.

Ejaaz:
And yesterday, Cursor released 2.5, which is on par, you can see on the top

Ejaaz:
here, with the other models, the Frontier models.

Ejaaz:
So the question I have is, like, Gemini kind of missed here.

Ejaaz:
Like, they should be focusing on the agentic side. As I mentioned earlier,

Ejaaz:
3.5 Flash is great at agentic tooling, but what they've missed here is the harness.

Ejaaz:
The harness is basically the wrapper, the muscle memory that goes around your

Ejaaz:
model that orchestrates the model in a really ideal way.

Ejaaz:
What OpenAI, what Anthropica realized is that that is super important.

Ejaaz:
And Elon Musk has figured that out, and that's why SpaceX is looking to acquire

Ejaaz:
or moving to acquire Cursor for $60 billion.

Ejaaz:
I think Google missed here, and what I come away feeling about the series of I.O.

Ejaaz:
Launches in general is, it's good, but it's not great enough,

Ejaaz:
and if you're Google, which was.

Ejaaz:
Two weeks ago, the most valuable company in the entire world,

Ejaaz:
you need to be making bigger bets. And it's a shame that they haven't made it.

Ejaaz:
That's that's currently how I feel.

Josh:
Yeah, when you compare the prices to I mean, it's four times the cost of composer.

Josh:
So it's like on a price basis is losing on a score basis is losing.

Josh:
I will say this is 3.5 flesh, not 3.5 pro, which we can expect to be released next month.

Josh:
So that might change things and shake everything up in a pretty big way.

Josh:
It's just not currently available. So we can't judge it we can't be

Josh:
critical of it there is one final announcement i just want to

Josh:
squeeze in because as a hardware guy i get excited about anytime

Josh:
someone releases hardware google has some new hardware offerings it

Josh:
comes in the form of glasses they are able to see the world and interpret it

Josh:
some of the examples that were used that i found pretty cool was um she could

Josh:
take a selfie the person who was giving a demo of the crowd and then prompt

Josh:
the glasses to not only capture the image but create a variation of it using Nano Banana Pro.

Josh:
It gives directions. It is agentic in the sense that it can work with your phone,

Josh:
order you coffee on the way to work.

Josh:
It's pretty cool, pretty interesting. I'm very excited to see more about glasses.

Josh:
They actually announced that they're planning to add a HUD, a heads-up display,

Josh:
basically a visual display into the glasses as soon as next year, which is exciting.

Josh:
So Google seems to be stepping pretty seriously into the hardware market.

Josh:
I think the current versions are kind of a joke, similar to all the others,

Josh:
but the ones with the heads-up display are going to be very exciting next year

Josh:
very much could be the year of ai glasses but with that

Josh:
I think we got it covered. Is that IO covered? Is that all of it?

Ejaaz:
I think that's just about everything. There's a bunch of other stuff,

Ejaaz:
but it's kind of tertiary.

Ejaaz:
There's some YouTube upgrades and stuff like that. But I think we've covered

Ejaaz:
all the hot topics, Josh.

Ejaaz:
I think I come away from this episode thinking Google is not out of the race,

Ejaaz:
but I do think that they need to double down on coding specifically.

Ejaaz:
And the crazy part is like they have the moat. They're currently in the number one position.

Ejaaz:
The only other company that could compete with them is Apple.

Ejaaz:
And Apple has been doing nothing.

Ejaaz:
They're getting a CEO swap. And then I think later this year with John Turner's

Ejaaz:
coming in and then I think we're going to see like them step up.

Ejaaz:
But the truth is, it's them versus these two startups, which.

Ejaaz:
Are aggressively increasing ARR by the month.

Ejaaz:
I don't know if you saw this, Josh, but someone projected out Anthropik's rate

Ejaaz:
of revenue increase, which means that by 2028, they would have surpassed Google.

Ejaaz:
So Anthropik's projection for this year was 10 billion ARR.

Ejaaz:
They are about to hit 45 billion ARR this month.

Ejaaz:
And if that projection or if that rate of increase keeps happening and they

Ejaaz:
start consuming more enterprise customers, etc, etc,

Ejaaz:
you can feasibly say that they will become as large as Google,

Ejaaz:
which then starts to justify all these crazy, you know, $1.1 trillion valuations

Ejaaz:
or the secondary round that they're raising right now for $1 trillion.

Ejaaz:
It kind of makes sense. So I think Google still has a shot.

Ejaaz:
This wasn't the killing blow, but maybe next time, maybe when Flash,

Ejaaz:
not Flash Pro, but 3.5 Pro comes out.

Josh:
Yeah, well, if I could give any feedback on the presentation,

Josh:
it would be to focus. It feels like Google doesn't really have any focus there.

Josh:
It felt like I was watching 15 separate presentations instead of one coherent one.

Josh:
And therefore, as someone who is an AI fan who literally follows this for a

Josh:
full-time job, I was unable to keep up and orient myself on where all these

Josh:
products fit into the ecosystem.

Josh:
So if I could leave one criticism for Google, it's just to focus.

Josh:
When I think about Anthropics offerings, I have a very clear picture in my head

Josh:
of what they're good at and how I want to use it.

Josh:
Same is true with OpenAI. With Google, that's not the case and i

Josh:
think if they can focus if they can compress all these

Josh:
releases down into a few key things that would meaningfully shift

Josh:
the way that people think about gemini and engage with the products and i hope

Josh:
that for their next releases their next presentations will get a little bit

Josh:
more of that focus but that is the episode for today that is google io you are

Josh:
now fully up to date and informed on all the things gemini all things google

Josh:
any final parting thoughts you just before we head out of here

Ejaaz:
Please spin out a really good version of Google Glass. That's one.

Josh:
Oh, man, I love that.

Ejaaz:
I really want a good hardware device. I'm like begging for it.

Ejaaz:
Josh and I saw another leak last week. We didn't mention this on last week's

Ejaaz:
episode, but it was those weird OpenAI over earbuds with the weird disk thing.

Ejaaz:
And I was like, I need that device. I just need something.

Ejaaz:
I realized I need hardware in an ever-increasing digital world.

Ejaaz:
So Google Glass, I almost think it's good if they would just spin it out and

Ejaaz:
make it a cool consumer company. But yeah.

Josh:
Well, you know, no one wants hardware more than I do. I'm dying for a good pair

Josh:
of glasses, just anything physical that I could touch.

Josh:
That's not my iPhone. That's not made by Apple.

Josh:
But alas, no one has completed that yet. So we will keep our eyes peeled.

Josh:
We will continue to watch. If you enjoyed this video, please don't forget to

Josh:
share it with a friend who might also have enjoyed it.

Ejaaz:
Don't forget to subscribe to the channel. Loads of new subscribers.

Josh:
Josh. Leave a comment. Yeah, we had our biggest episode ever.

Josh:
Drop on Monday, the Leopold Ashenbrenner portfolio, the new 13f filing so if

Josh:
you haven't seen that i would highly advise we had a lot of new people joining

Josh:
so for the new people welcome we publish new episodes four times a week about

Josh:
20 minutes sometimes we go a little bit longer when we get excited but there

Josh:
will be many more to come this week so thank you guys so much for watching this one and we'll see

Ejaaz:
You next time see you guys.