Google’s headache

In today’s big story, we’re looking at the chaos surrounding Google’s augmented-reality plans and how it highlights a bigger weakness at the tech giant.

What’s on deck:

• Markets: A one-time Wall Street wunderkind looks to pull his hedge fund out of a performance rut.
• Tech: Zoom, a key company enabling remote work, is calling its employees back to the office.
• Business: Why it’s important to “hire slow, fire fast,” according to a tech CEO.

Headaches over hardware

The phrase, popularized by the show “Breaking Bad,” is a nod toward problems arising when one doesn’t commit to a plan or strategy.

It’s also useful advice for Google regarding its augmented-reality business.

The tech giant has struggled to gain momentum in the mixed-reality sector despite numerous efforts, Insider’s Hugh Langley reports.

From Iris to Alius to Betty, Google’s code-named AR projects rival a millennial parent’s baby-name list. But the projects have been just that: projects.

Google has failed to turn any into a viable business yet, thanks largely to constant pivots and strategy tweaks, which eventually led to a talent exodus, Hugh reports.

To make matters worse, the chaos in Google’s AR division comes as one of its biggest rivals — Apple — has generated buzz for its mixed-reality headset, the Apple Vision Pro.

But the problems Google faces with AR are a symptom of a larger issue for the tech giant: its inability to be a hardware power player.

For all its strengths in search and software, Google’s commitment to hardware has been unconvincing. Phones, wearables, and other devices made by Google comprise a fraction of its overall business.

But in the world of AR, hardware is the most critical piece of the puzzle. Factors like the weight of the headset or its battery life have always been considered vital for widespread adoption.

Google’s AR missteps could indicate the company’s lack of experience in hardware development. Rapidly changing and evolving is typically embraced in software development, but that’s not true for hardware, which requires a longer-term commitment.

For the time being, Google seems happy to somewhat punt on its AR aspirations. Instead, it’s focused on developing software for other companies to use on their AR projects, including longtime partner Samsung. It’s a familiar playbook, as Google found success with the Android operating system for mobile phones to rival Apple’s iOS.

But that strategy is a gamble, as one former employee pointed out to Hugh. A hardware partner could develop its own software, leaving Google to fend for itself.

Of course, the tech giant might argue it has bigger fish to fry. Google is amid a heated arms race with its chatbot Bard.

However, with some of its biggest rivals — Apple and Meta — pushing deeper into AR, it raises the question: Could Google be setting itself up for disaster by not addressing its hardware weakness sooner?

3 things in markets

1. Tough times at the $13 billion hedge fund Schonfeld. Ryan Tolkin came across as a wunderkind when he helped the fund notch big returns as a young executive. But the CEO now faces the tall task of digging Schonfeld out of a performance rut.
2. Dozens of countries have shown interest in joining BRICS. The group, which includes Brazil, Russia, India, China, and South Africa, has reportedly garnered interest from more than 40 countries, with nearly two dozen formally asking to join. But the group meant to challenge the Western-led world order isn’t without internal drama.
3. The dog days of summer haven’t been kind to stocks. It’s been a tough month for the S&P 500, which dropped almost 5% in August. But Wall Street is split on whether it’s a minor setback amid a larger rally or a sign of more pain to come.

1. A phishing attack, whistleblower complaints, and a wave of exits. While many firms have pulled back on investing during the shakier tech landscape, Fin Capital has done the opposite, growing into the most prolific fintech investor in the world. But it hasn’t always been smooth sailing for the VC firm.
2. AI is disproportionately going to replace jobs held by women. A new study found that in high-income countries, around 21 million jobs held by women — and only 9 million jobs held by men — will be replaced by AI.
3. Leaked meeting recording: Zoom CEO says remote work doesn’t let employees be as innovative. Eric Yuan said during an all-hands meeting that remote work also doesn’t let employees build as much trust. It’s the latest in an industry-wide crackdown on remote work.

1. Macy’s, Dick’s, and Lowe’s sound the alarm about US shoppers. The companies reported a variety of threats brewing among US consumers: they have less cash to spend; they’re more interested in experiences than products; and they’re stealing more products.
2. Bankrupt adtech company MediaMath has a buyer, according to court filings. US-based digital advertising company Infillion is the highest bidder for MediaMath’s assets. Multiple people familiar with the matter said Infillion plans to buy the platform for around $22 million.
3. CEO says it’s important to “fire fast.” Melissa Kwan, the CEO and cofounder of eWebinar, said her company lost $450,000 after it didn’t fire five wrong hires quickly enough. She said it’s important to trust your gut and to separate emotions from decisions.

Burning Man, Shopify, & more

• These are all the Republican presidential candidates attending the first debate tonight — and their planned attack strategies.
• Many homeowners are facing a costly, new predicament — nobody wants to insure them.
• A leaked Shopify email shows it’s cutting access to merchant success managers for 16,000 of its highest-paying subscribers.
• A Gen Z Googler making $150,000 per year says he works 1 hour per day and spends the rest of his time working on his startup.
• Behind-the-scenes of the life and career of Jeff Bezos.
• New York City has a new plan to convert empty office buildings into 200,000 homes.
• Tropical storm Hilary flooded the site of the Burning Man festival (which is tech bros’ favorite annual party).
• Airplanes are reportedly nearly colliding multiple times per week, and part of it is thanks to a lack of air traffic controllers — a high-stress, high-paying job.

Debate, earnings, & tropical storm

• The first Republican presidential debate will be held tonight at 9 p.m. ET in Milwaukee. Chris Christie, Ron DeSantis, Nikki Haley, Mike Pence, and other nominee hopefuls will debate at the event. Former President Donald Trump will not attend.
• Earnings on deck: Nvidia, Xiaomi, Autodesk, and other companies.
• Tropical Storm Franklin is expected to hit Haiti and the Dominican Republic. Seawater could rise as high as three feet. And the storm could strengthen into a hurricane once it passes the island and reaches the Atlantic Ocean.

Scenic train rides