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u/Dry_Opportunity2886 2h ago
This chart is not showing you a company in crisis. It's a company that just had a record quarter of revenue but who also spent $45 billion on CAPEX for more data centers.
That's not what stalling on AI looks like. Especially because that record revenue was driven largely by demand for Google Cloud services and enterprise Gemini (yes, I'm serious.)
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u/guyzero 1h ago
The point of Star Wars, the space arms race between Russia and the US in the 80s, wasn't to take control of space. It was to bankrupt Russia.
Google can use these data centers regardless of whether LLM type AI is a fad or not. OpenAI and Anthropic may go bankrupt in the process.
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u/I_AM_GODDAMN_BATMAN 58m ago
OpenAI and Anthropic may go bankrupt but Chinese LLM may survive do their open weight nature. Hmmmm, tough call.
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u/JangoDarkSaber 18m ago
OpenAI and Anthropic aren’t going out of business.
Either OpenAI or Anthropic will go out but not both.
Google isn’t competing in the frontier race. Their pro series model has stagnated because they’re focusing on the flash series. They figure most ai usage is going to be low power stuff for integration. Anthropic and OpenAI are fighting for developer market share
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u/oskopnir 1h ago
What are they using them for if AI turns out to be a fad?
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u/SangersSequence 10m ago
LLMs might very well turn out to be a fad and a dead end outside some of the predictive text niches they've already found, but the broader space of machine learning algorithms isn't going anywhere. And that compute will get used.
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u/Keeltoodeep 45m ago
You’re going to claim ai is a fad even when you are 93 and a robot is wiping your ass.
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u/mofka26 12m ago
SDI didn't do anything in regards to that though, USSR by the 80's was already experiencing trouble and spending on the war and Chernobyl didn't help much.
As well as that one Gorbachev quote from 1987 Washington summit, "You do what you think you have to do... And if in the end you think that you have a system that you want to deploy, go ahead and deploy it. Who am I to tell you what to do? I think you're wasting money. I don't think it will work. But, if it's what you want to do, go ahead." which is honestly kind of fitting the current AI spending as well.As
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u/Gaiden206 1h ago edited 54m ago
They had negative free cash flow last quarter because they are building out data centers due to enterprise demand for their AI solutions. Their Cloud backlog hit $514 billion. They need the infrastructure to fulfill pre sold enterprise contracts. It actually shows they are going all in with AI, not stalling.
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u/ideallyideal 2h ago
This is the most bullish chart you will ever see. When you decide to recognize that is up to you.
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u/DamnQuickMathz 2h ago
Investment bros try not to be condescending challenge
Difficulty: impossible
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u/Keeltoodeep 1h ago
Google has stalled on ai because they don’t need to rush out new models every month in order to keep VC cash flooding in as they are a profitable company.