Alphabet (GOOGL) subsidiary Google updated its artificial intelligence (AI) pledge to not use the technology for harmful purposes, including weapons or surveillance applications. This is a stark change from its prior stance, which resulted in the company abandoning contracts with the U.S. government to avoid using its AI for these purposes.
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Now, Google is actively seeking lucrative AI contracts with the government, using the AI race with China as an argument to alter its pledge. Google DeepMind CEO Demis Hassabis said Tuesday that “democracies should lead in AI development, guided by core values like freedom, equality, and respect for human rights.”
Why Did Google Change Its Stance on Dangerous AI Use?
Google, like many other tech companies, faces pressure to show investors that the billions of dollars spent on AI will turn a profit. That’s been hard to do without government contracts, and AI development expenses have ballooned over the years. Some investors worry that tech companies have spent too much on AI without enough progress, especially after DeepSeek’s surprise launch last month.
Investors keeping tabs on Google’s AI development likely aren’t surprised by today’s pledge change. The company fired 50 employees who protested the use of its AI in Project Nimbus, which provided cloud computing and AI services to the Israeli government in 2024. Based on today’s change, more contracts like this will likely be signed.
Is GOOGL Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Google is Moderate Buy based on 22 Buy and 9 Hold ratings over the last three months. With that comes an average price target of $217.22, a high of $235, and a low of $184. This represents a potential 14.56% upside for GOOGL stock.
