4 ms·

Google business model is mostly ads (~80% revenue) and majority of their ads are from google search (~60% of revenue). This allowed them to subsidise many other

by pzo 2y ago

Google business model is mostly ads (~80% revenue) and majority of their ads are from google search (~60% of revenue). This allowed them to subsidise many other projects in the past. These days they have a lot of competition in ads scene (meta, tiktok, x, reddit, amazon) and also other are gunning at google search: perplexity, searchGPT, bing. Apple choosing OpenAI for Apple Intelligence. Amazon teaming with Anthropic for Alexa. On top of that antitrust in EU and USA. That's the reason google is killing lots of projects or loosing on many fronts these days or they aggressively try to monetise other projects (Youtube, Manifest V3.0). If they don't win in this AI race or diversify revenue/business model enshitification will continue.

red-iron-pine 2y ago
the enshitification will continue regardless, because stock prices need to go up and they will eventually run out of runway. in theory, winning the AI race gives them more runway, but we've hit the limit of LLMs and there is a lot of hope that some magical Gen-AI daddy will come in and fix everything. even if they get there, will it be profitable compared to competitors? and for how long?