P.M. Edition for May 20. Google is adding an AI chatbot feature to its iconic search page, allowing it to more closely rival competitors like ChatGPT. WSJ reporter Katherine Blunt discusses Google’s parent, Alphabet, plans to bet even bigger on artificial intelligence. Plus, despite the fear of an immigration crackdown from the Trump administration, many workers without legal status are still going to work. Paul Kiernan, who covers the U.S. economy for the Journal, joins to talk about why that is, and what it means for industries dependent on migrant labor. And President Trump pressures Republican dissenters in the House to drop their objections to his tax and spending bill which could go on vote as early as tomorrow. Alex Ossola hosts. Sign up for the WSJ's free What's News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices
Chapter 1: What new AI features is Google adding to its search engine?
One of the biggest announcements today out of the conference is that Google is rolling out this AI mode capability, and it's meant to create an experience for users akin to what they might find if they use ChatGPT or one of ChatGPT's competitors or Google competitors.
And then other announcements that were made today were previews of what the company hopes to achieve in AI, for example, with a universal AI assistant who could be very helpful in managing different areas of your life and the administrative tasks we all have to do. There was a lot as it related to images and videos and the creative capabilities that can come with more advancements in AI.
Chapter 2: How is Google addressing competition from ChatGPT?
Chapter 3: What are the implications of immigration-related arrests?
It's Tuesday, May 20th. I'm Alex Ocelev for The Wall Street Journal. This is the PM edition of What's News, the top headlines and business stories that move the world today. Your Google searches are about to look different. Google is overhauling its iconic search engine.
At its developers conference today, the company announced that it has started rolling out what it calls AI mode to its search page. It's being added as a tab within search for users in the U.S. Speaking with me from outside that Google developers conference, WSJ reporter Catherine Blunt said Alphabet is now taking aim at the AI companies challenging its search dominance.
One of the biggest announcements today out of the conference is that Google is rolling out this AI mode capability, and it's meant to create an experience for users akin to what they might find if they use ChatGPT or one of ChatGPT's competitors or Google competitors.
And then other announcements that were made today were previews of what the company hopes to achieve in AI, for example, with a universal AI assistant who could be very helpful in managing different areas of your life and the administrative tasks we all have to do. There was a lot as it related to images and videos and the creative capabilities that can come with more advancements in AI.
And this is a really interesting moment for Alphabet and for Google specifically. Google has struggled to figure out how exactly to embrace AI, given that it does pose at least some sort of threat to the traditional search model that's really been its largest driver of revenue.
And so this is a big announcement today because it's Google finally conceding that the future of search is really going to be very AI driven and it's going to have to adapt.
Elon Musk isn't the only Tesla executive rewriting the compensation playbook. The electric carmaker's finance chief, Vabhav Taneja, received a pay package of $139 million last year. That's more than most CEOs. And according to Equilar, the highest amount paid to a chief financial officer since modern reporting began in 2006. Tao Francis covers executive compensation for the journal.
Tao, why is Taneja's pay so high?
The way the company explains it is that he hasn't received a raise since he was made CFO in 2023. They did a review of compensation at the company for top executives, and they adjusted pay where they felt like it was needed for competitive reasons, for geographic reasons, and so on. You also have to take it in the context of the company itself in general.
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Chapter 4: Why is Taneja's compensation so high at Tesla?
And so essentially over the course of four years, he's slated to get the stock and the options underlying this pay package if he stays in the job. That's not a high bar, except that, of course, it's a pretty high profile, high stress job, you would imagine.
That was WSJ reporter Tao Francis. Thank you, Tao.
No problem.
Chapter 5: How does Tesla's executive pay relate to performance?
Separately, Elon Musk said today that he plans to cut back on political spending. Musk is the world's richest person and spent a considerable fortune helping to elect President Trump. In a video interview at the Qatar Economic Forum today, Musk indicated he still could increase spending again if conditions change.
Musk played a polarizing role in the early weeks of the Trump administration, overseeing the Department of Government Efficiency as it slashed federal spending and jobs. In April, Musk said he was going to spend less time in Washington and more overseeing Tesla, his electric vehicle company, as investors had grown worried that he had taken his eye off the ball.
Tesla sales and share price had dropped during his time in the White House. Asked today if he would still be chief executive of Tesla in five years, Musk said yes. He then added a caveat, saying, well, I might die. Thanks to Musk's comments, Tesla stock was up about half a percent. But U.S. stocks fell today as losses in big tech weighed on major indexes.
The S&P 500 slipped about 0.4 percent, ending a six-day winning streak. The Nasdaq also dropped about 0.4 percent, while the Dow dipped roughly 0.3 percent. Home Depot said today that it plans to keep prices steady despite tariffs.
The company's chief financial officer, Richard McPhail, said in an interview that the retailer has been pushing to source more of its supplies from outside of China and that it's working with suppliers to keep prices steady despite tariffs. Last week, Walmart announced that it would raise prices because of tariffs, prompting President Trump to criticize the company.
Walmart and Home Depot kept their financial forecasts for fiscal 2025 unchanged, contrasting with a flurry of companies that have scaled back or suspended their forecasts in response to on-again, off-again tariffs. Coming up, why migrants are still going to work despite fears from an immigration crackdown. That's after the break.
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President Trump's mass deportation push has instilled widespread fear among migrants. What it hasn't done so far is stop many from showing up to work. Data covering immigrants lacking permanent legal status is fragmentary. But according to a monthly Census Bureau survey of households, as of April, the number of foreign-born workers with jobs rose 0.1 percent from January.
The data doesn't distinguish between workers in the U.S. legally and those without legal status. For more, I'm joined now by Paul Kiernan, who covers the U.S. economy for The Wall Street Journal. Paul, migrants are worried, but they're still going to work. Why is that?
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Chapter 6: What are Musk's future plans for political spending?
You are certain that you will fall behind on your bills. And people just weigh that certainty against the risk that's impossible to measure of getting swept up in a raid somewhere.
For industries that rely on migrant workers, what are they doing about this?
Many times immigrants from the same nationality or even the same town will go to one community. Many of them will work in the same factory or the same farm. If the Trump administration is allowed to revoke those people's status en masse, It could leave a lot of employers without a big chunk of their workforce eventually. But we just haven't seen that happen yet.
They're just waiting with bated breath. Employers haven't had to make really difficult decisions about letting people go or scrambling to replace workers whose employment authorization was revoked. But there is a lot of anxiety among employers out there that we talk to.
That was WSJ reporter Paul Kiernan. Thank you, Paul.
Thanks.
President Trump turned the screws on holdout Republicans, warning they would pay a steep political price, including being knocked out of the party, if they stood in the way of his tax and spending agenda. In a closed-door meeting with the House GOP conference today, the president urged fiscal conservatives to give up efforts to expand Medicaid cuts.
He also pushed a bloc of moderates to drop their drive for blue state tax relief, encouraging them to unite around his one big beautiful budget bill. That's according to people familiar with his comments. Trump's arm-twisting came at a high-stakes moment. House Speaker Mike Johnson has said he wants to vote on the package as soon as tomorrow.
But holdout lawmakers said sticking points remained and could force changes to the bill or delays in voting despite Trump's exhortations. And the Trump administration released a more stringent set of guidelines for approving COVID-19 vaccines, requiring more evidence for new shots for healthy adults and children.
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