The Indicator from Planet Money
The Indicator from Planet Money

Why Google fell behind in the AI race

July 9, 2026

AI Summary

5 min read

Google had the technology to launch a leading chatbot before ChatGPT, but it didn’t. According to journalist Sebastian Mallaby, the company suffered from a “triple innovator’s dilemma”—three distinct reasons why its own success prevented it from releasing the AI products it had already built. Mallaby spent over 30 hours interviewing DeepMind CEO Demis Hassabis, mostly in a London pub, and came away convinced that Google’s position as the dominant search engine created three specific barriers that kept it from leading the AI race, even though its researchers had already made the necessary breakthroughs.

Hassabis, who won a Nobel Prize for DeepMind’s work on protein folding, told Mallaby that his goal in building AI is to understand the universe. “I can feel reality staring at me, calling out to me, waiting to be discovered,” he said at 2 a.m. over beers. That ambition led him to co-found DeepMind in 2010, which Google acquired in 2014. Under Google, DeepMind produced landmark research, including predicting how amino acids form three-dimensional shapes—a fundamental process known as protein folding. Hassabis told Mallaby that one Nobel Prize was “a nice start, but he’d quite like another one.”

Continue reading the full summary in the app — free to try.

Read Full Summary →

Free • No credit card required

What you'll learn

  • 1 (00:07) **Why Google isn't leading the AI race** - Hosts Terry and Waylon introduce the puzzle: Google invented the verb "to Google" but is not synonymous with chatbots (ChatGPT) or coding tools (Claude).
  • 2 (00:44) **Demis Hassabis and the "throw everything at the wall" moment** - DeepMind CEO Demis Hassabis showcases a quirky video generator and then declares the goal of "solving all disease," yet Google still comes second in AI.
  • 3 (01:28) **The "fantastic at coming second" thesis** - Journalist Sebastian Mallaby introduces the core claim: Google's AI lab is brilliant at breakthroughs but consistently fails to be first to market.
  • 4 (02:59) **Sebastian Mallaby's access to Demis Hassabis** - Mallaby spent 30+ hours interviewing Hassabis in a London pub, capturing his intense, almost mystical drive to understand reality.
  • 5 (03:43) **Hassabis's founding vision** - Hassabis explains his motivation: "I can feel reality staring at me... waiting to be discovered." He studied cognitive neuroscience and co-founded DeepMind in 2010.
  • 6 (04:26) **The Google acquisition** - By 2013, Hassabis was courted by Zuckerberg, Musk, and Larry Page; he chose Google, leading to breakthroughs like predicting protein folding (winning a Nobel Prize).
  • 7 (05:04) **The late 2022 puzzle** - Despite having the technology, Google did not release a language bot first. Sebastian introduces the "triple innovator's dilemma" to explain why.

+ Full timestamped outline available in the app

Guests on this episode

Show Notes

When it comes to AI, Google’s Gemini does not have the same household recognition that Claude and ChatGPT do. One big explanation: the innovator’s dilemma. We explain how Google DeepMind CEO Demis Hassabis is trying to fight a lumbering company’s constraints to build AI superintelligence. 

Sebastian Mallaby’s book is The Infinity Machine: Demis Hassabis, DeepMind, and the Quest for Superintelligence 

Fact checking by Sierra Juarez

Your Next Listen 
The inventor’s dilemma 

Connect with The Indicator 
— Sign up for The Indicator’s brand new newsletter 
— Buy the Planet Money book 
— Find our socials, YouTube and more!
— For sponsor-free episodes, subscribe to NPR+


See pcm.adswizz.com for information about our collection and use of personal data for sponsorship and to manage your podcast sponsorship preferences.

NPR Privacy Policy
The Indicator from Planet Money