Is Google too broken to be fixed? Investors 'deeply frustrated and angry,' former insider warns

David Friedberg, a former Google executive, co-hosts a popular tech podcast with fellow entrepreneurs and investors

A former Google executive revealed that investors are "deeply frustrated" that the scandal surrounding their Gemini artificial intelligence (AI) model is becoming a "real threat" to the tech company.

Google has issued several apologies for Gemini after critics slammed the AI for creating "woke" content. 

The Production Board CEO David Friedberg, a former Google executive, weighed in on the controversy on the technology podcast "All-In," which he co-hosts with fellow entrepreneurs and investors Chamath Palihapitiya, David Sacks and Jason Calacanis.

Many investors are "deeply frustrated and angry" that AI could hurt Google's monopoly, Friedberg said.

GOOGLE GEMINI USING ‘INVISIBLE’ COMMANDS TO DEFINE ‘TOXICITY’ AND SHAPE THE ONLINE WORLD: DIGITAL EXPERT

Google Gemini former employee

An ex-Google executive warned investors are worried about Google's AI model hurting business. (Tobias Schwarz/AFP/Jonathan Raa/NurPhoto/David Paul Morris/Getty Images / Getty Images)

"The real threat to Google is more so, are they in a position to maintain their search monopoly or maintain the chunk of profits that drive the business under the threat of AI? Are they adapting? And less so about the anger around woke and DEI," Friedberg explained.

"Because most of the investors I spoke with aren’t angry about the woke, DEI search engine, they’re angry about the fact that such a blunder happened and that it indicates that Google may not be able to compete effectively and isn’t organized to compete effectively just from a consumer competitiveness perspective," he continued.

"So investors are banging the table."

GOOGLE CO-FOUNDER SAYS COMPANY ‘DEFINITELY MESSED UP’ ON GEMINI'S IMAGE GENERATION

Photo illustration of Google's AI model Gemini

Google launched an update to Gemini last week to address inaccuracies with the AI model. (Jonathan Raa/NurPhoto via Getty Images / Getty Images)

Google halted Gemini's image generation feature last month after users on social media flagged that it was creating inaccurate historical images that sometimes replaced White people with images of Black, Native American and Asian people.

Google's parent company Alphabet Inc. fell by up to 4.4% the week after the disastrous rollout of Gemini. This dip was equivalent to losing more than $70 billion in value.

Google CEO Sundar Pichai promised the company was working "around the clock" to fix the AI model, calling the images generated "biased" and "completely unacceptable." 

The company launched an update to Gemini last week that allows users to edit inaccurate responses and give people "more control."

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Fox News' Chris Pandolfo, Lindsay Kornick, Breck Dumas and Nikolas Lanum contributed to this report.