Google: The Artificial Intelligence Warlock
Everyone Wrote Google Off. My Color blind Dad Didn't.
From Research Lab to World Factory
The previous valuations during the slums of 2024 were actually shameful. A brief period where every MAG7 except GOOGL 0.00%↑ had 30x+ multiples based on nothing other than “AI integration” vibes alone.
But while everyone was clowning on the Bard flop, Google was secretly consolidating. Gearing up on TPUs, harvesting data, securing nuclear reactors while making sure the economic engine kept running1.
So now? The table has turned. Back in Google’s favor. And this time they’re coming for everything, leaving nothing to chance…
OpenAI vs Google?
There has never been more AI releases than today. It feels like incremental slop every month but DeepMind CEO, Demis Hassabis just confirmed a 50% chance that the current LLM architecture gets us to superintelligence2.
The Anthropic investment is looking more promising… So is the OpenAI threat. But despite the compute war: OpenAI can’t compete against Google. It’s virtually impossible and might just be a suicide mission.
OpenAI has pulled in ~$26B so far.
YouTube alone does $60B+ in a year.
Google already has the ecosystem. For OpenAI to compete, they have to overextend themselves, burn away compute they don’t have and borrow more funds just to stay in the game.
So replacing Google? Cut the cope.
The Engine That Can’t Be Stopped
Search was the first gear. Android put it into every pocket on earth. YouTube became the global consciousness no one can replicate. Now they're harnessing all of it into one digital mind.
Remember the ‘Grand Scheme’ of OpenAI that I mentioned? Leveraging their intelligence at scale? Well, while OpenAI talks about deployment… Google has ALREADY been doing so in-house for ages.
Gemini may not be perfect or particularly user-friendly… yet. But with more TPUs, the multimodal angle and DeepMind? They’re set.
Set to deploy this capability into Biotech. Quantum computing. Energy = Sheer intelligence. Owning all of the data & hard tech themselves, they don’t need to share any of the potential crumbs…
Google Ecosystem Now Sovereign
Now Google is marching straight into NVIDIA’s turf with their own Tensor Processing Units (TPUv7)3. And in comparison Google owns every layer of the internet rather than just CUDA, thus able to perceive demand end-to-end.
Nobody else has that. The only thing still holding them back is Gemini’s UX not being appealing enough yet for consumers. A temporary flaw or maybe just irrelevant altogether…
Since most can’t escape their ecosystem anyways, and nobody knows what’s underneath the hood.
Google usually stays quiet until they touchdown on a breakthrough, just like they did Willow4. Who knows what they’ve got cooking in Calico? DeepMind? Or anywhere else?
The Only Thing That Could Stop Them
OpenAI is desperately chasing the same vertical integration that Google already has and now must defend. So the only thing keeping Google away from full ascension is whether they can execute the next evolutionary step while maintaining their core.
NVIDIA owns ~85% of AI chip market share and CUDA is what everyone currently uses5. Furthermore, OpenAI is still a threat both dominating compute and consumer market share while Gemini is just awkward.
But if Google keeps their engine revving while somehow managing to become a factory that monetizes its AI services on top? Their success is almost guaranteed.
That’s the big bet. And considering Google’s history of inventing groundbreaking technology, like the transformer and AI, only to then somehow fall behind in the commercialization race... The odds aren’t as promising as they seem.
Lastly, designing a product is easy, but can you produce it at scale? Huang deserves cred here. One would be unwise to bet against him… But then again the potential reward here is infinite.
My Move?
In my opinion Google is probably overbought here ahead of the Google I/O and the new shift in sentiment, but I’m not backing down.
Despite my portfolio now looking childish — 38% GOOGL 0.00%↑.
What better long-term bet is there? Everything else just looks a lot worse.
OpenAI has to raise the GDP of a small country just to stay in the race while Google is funding that same race out of their YouTube pocket change!
My dad marked OpenAI as the ultimate lemonade stand in comparison.
He just bought calls for $500 before 2027 and is thinking of buying the dip in NVDA 0.00%↑ as well when this trade slows.
We are both betting on Demis and Sundar to execute Page’s plan turning Google from the AI Research facility to the AI Research + Factory vehicle!
WE’RE NOT CRAZY!
🛰 Signal LOST: End of transmission — INVADER out… 🔬🏭
Disclaimer: This post is for informational and entertainment purposes only. It reflects personal opinions and is not intended as financial advice. Always do your own research before making investment decisions.