Chamath: Google Is the Ultimate AI Compounding Machine
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Episode Description
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Brief Summary
Google's 25-year average return is 32%, showcasing their strong business model and effective AI integration.
Key points
- Google's Impressive Returns. Google's average return on invested capital since going public is an astounding 32%.
- The Power of AI and Cloud. Google's transition to AI and cloud services positions them for massive rewards.
Transcript
Do you know what Google's 25y year average return on invested capital has been since going public? 32%. >> Jesus [ __ ] Christ. >> When you are a machine and a group of people and a business model that compounds money at 32% over 20-year average, you give these guys the benefit of the doubt. These are not people that are flying fast and loose. They are methodically investing in their edge. they are going to get massively rewarded. Google has an incredible search experience. They've seem to be navigating this transition to use AI. They have an incredible cloud business and they have an incredible silicon business. The best thing that
can happen to them is 500 different models proliferate and they support all of them because they will make so much money at the silicon layer. They'll make so much money as the cloud provider and they'll find a bunch of apps including YouTube and other things to make money from because you use the AI to target ads better or to help make better content, etc., etc. >> Fragmentation's good for them. >> Oh, it's great for them. It's a compounding
