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1. OpenAI is too large a supplier for LLMs, and they are trying to create supplier diversity 2. $2B is a drop in the bucket for Google. Even after the severe f
by TuringNYC 3y ago
1. OpenAI is too large a supplier for LLMs, and they are trying to create supplier diversity
2. $2B is a drop in the bucket for Google. Even after the severe fall this month, the Google Market Cap is $1.536 Trillion. Consider the investment as a % of market cap
3. It is undeniable that small players can move fast, so even if Google's AI is amazing, the slope is probably not as high as a fast moving startup
4. These products have 2nd order revenue boosters -- you might use Anthropic's marketplace app, as a theoretical example, but you end up spending much more on compute/storage/cloud in doing so, helping the cloud majors
- HNDen21 3y agoI would not consider the investment as a % of market cap since Google doesn't own all that market cap... I would consider the non float shares + short term investments + cash on hand or Revenue/Profit better
- WrongAssumption 3y agoNot seeing how that distinction matters. Google’s owners (shareholders) do own all that. And google represents the collective financial interests of the shareholders.
- staticman2 3y agoGoogle's shareholders own stock. Nothing more nothing less.
- sangnoir 3y ago> I would not consider the investment as a % of market cap since Google doesn't own all that market cap. Market cap does matter because you can use it to gauge how easily Google could hypothetically raise the same amount[1] by issuing additional shares without a shareholder revolt. 1. Or complete an all-stock deal or acquisition.