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points by mirekrusin 1 day ago | 0 comments

Why their shares tanked 10% then?

It's a tale of two AIs for Google. Cloud doubled revenue and tripled profit, probably based off serving models. So good for Cloud.

Search increased revenue and profit which is good. Means that LLMs are not yet stealing revenue. But also bad because the massive spend on infrastructure doesn't look like it's going to come back as increased revenue.

[–] mirekrusin 1 day ago

Out of all companies, with their own TPUs and native large scale computing... "habitat" they exist in – they probably know how to spend it well.

[–] Anon1096 1 day ago

People on the internet really overrate google's TPU advantage. OAI and Anthropic and others have been using TPUs as well for a long time now too. And they've also hired lots and lots of talent from the rest of FAANG, hyperscale compute talent and knowledge is also well distributed through all the top AI companies at this point.

[–] ismailmaj 1 day ago

They control the supply chain though, so they can't be price-gouged by Nvidia

[–] UncleOxidant 1 day ago

Pretty sure it's this part:

> generating $127B in cash, and capital spending on property and equipment was $132B, so the business consumed $5B.

[–] mirekrusin 1 day ago

well, they don't burn it like anthropic on rent, they spend it on their own TPUs, right?

[–] mono442 1 day ago

There's no guarantee it'll generate big enough returns and it's probably at jacked up prices.

[–] utopcell 1 day ago

not sure why you're getting downvoted, this is pretty much the reason.

[–] rubiquity 1 day ago

First signs that Search revenue might be peaking.

[–] anukin 1 day ago

They need to do layoffs and it will pop by 20%

[–] hiddencost 1 day ago

It's about expectations. They missed expectations on earnings, meaning they're less valuable than people thought.

[–] paulpauper 1 day ago

because missed estiamtes https://finance.yahoo.com/technology/article/google-stock-pl...