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Conclusion: "Google is sitting on an enormous amount of cash, but if the company does lose AI, and AI in turn eats search, it will lose its core function, and b
by skmurphy 3y ago
Conclusion: "Google is sitting on an enormous amount of cash, but if the company does lose AI, and AI in turn eats search, it will lose its core function, and become obsolete. Talent will leave, and Google will be reduced to a giant, slowly shrinking pile of cash."
- riku_iki 3y agoI don't think pile of cash will be shrinking. They will fire more people and reduce more expenses once profit margin will come closer to danger zone. And will turn into investment fund once core function will be lost completely.
- skmurphy 3y agoCan you point to some other examples of technology companies that lost their competitive advantage and were able to pivot successfully into an investment fund? It's an interesting premise but I am at a loss for an existence proof of any firm successfully executing the transformation.
- pokepim 3y ago[dead]
- riku_iki 3y agoNo, I can't. It is not easy research for me to find some tech company which collected 100b in cash, and has main business collapsed.
- steve1977 3y agoHave you tried asking ChatGPT? (sorry, couldn’t resist…)
- bongoman37 3y ago[dead]
- datavirtue 3y agoThe Kodak pension fund is gigantic. It eclipses the husk of a company that remains. Google could close up shop, invest in a tobacco company (and maybe a handful of other dividend kings), and literally live forever as a trillion dollar fund.
- skmurphy 3y agoAccording to https://www.plansponsor.com/kodak-outsources-management-of-overfunded-u-s-pension-plan/ https://www.plansponsor.com/kodak-outsources-management-of-o... it's $6.5 billion. But pension fund management is mandated by regulation. Google "cash on hand" is https://companiesmarketcap.com/alphabet-google/cash-on-hand/ https://companiesmarketcap.com/alphabet-google/cash-on-hand/ $111 billion. The question I am having trouble parsing is who makes the decision to become a pension fund at Google given their historical focus has been on technology. It's a significant pivot. At a small closely held firm I can see the owners deciding to use the corporation as a vehicle for managing retirement funds (or inter-generational wealth transfer) but Google has a much more diverse base of owners with divergent interests.
- riku_iki 3y ago> who makes the decision to become a pension fund at Google given their historical focus has been on technology I don't think anyone said Google has to become pension fund. They can become some generic investment fund: invest into stocks, other funds, bonds etc, or focus on tech investments.
- skmurphy 3y agoSorry "pension fund" was a typo on my part, I meant investment fund.
- elSidCampeador 3y agoBerkshire Hathaway. Not a "true" investment fund but not far off either.
- deleted 3y ago[deleted]
- ajhurliman 3y agoYahoo (they’re just a portfolio now right?)
- skmurphy 3y agoYahoo is a portfolio of brands. Compare https://www.yahooinc.com/our-brands https://www.yahooinc.com/our-brands with firms that manage investments: https://www.bridgewater.com/ https://www.bridgewater.com/ https://www.schwab.com/ https://www.schwab.com/ https://www.blackstone.com/ https://www.blackstone.com/ https://www.sequoiacap.com/ https://www.sequoiacap.com/ Yahoo is managing web properties and is essentially a media company (is paid by advertisers or other customers to deliver a well-characterized audience).
- llm_trw 3y agoMost talent left a long time ago. The people left are the hacks and the ones with mortgages.