Does Google prefer Webp for image SEO?

We have converted many of our images to Webp, but corresponding jpeg, png, svg pictures become extremely pixelated in the process.

It's hard to believe this is the next generation of photos. Maybe our chosen img converters are bad (Convertcloud, convert.io?). It doesn't seem lossless at all!

Does Google give any special preferences to webp? If not, we might stick with jpeg which are just 10-20% large (negligible for our site data size) and provide a much more attractive customer experience.