Tech giant Google (GOOGL) unexpectedly pulled out of a $100 million Pentagon competition to develop voice-controlled drone swarm technology, even after its proposal had been accepted. According to a Bloomberg report, the company informed the government on February 11 that it would no longer participate, just weeks after submitting its entry. Although Google officially cited a lack of resources, internal records show that the decision came after an ethics review.
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Unsurprisingly, the decision created internal frustration. Some employees involved in the project were disappointed, especially as debates continue within the company over the use of AI for military purposes. In fact, hundreds of Google researchers have previously voiced their concerns about contributing to classified defense work.
And while Google has recently expanded its work with the Pentagon, it has also faced pressure from employees to avoid building autonomous weapons systems. For example, workers recently urged CEO Sundar Pichai to not get involved in classified AI projects. Nevertheless, Google has gradually increased its defense-related projects in recent years as AI continues to play a larger role in national security. In addition, a company spokesperson said in the report that the company wants to stay focused on the initiatives where its models are most effective.
Are GOOGL Shares a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 26 Buys and five Holds assigned in the past three months. Furthermore, the average GOOGL price target of $387.68 per share implies 11.1% upside potential.
