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Google is winning on every AI front

(www.thealgorithmicbridge.com)
993 points vinhnx | 4 comments | | HN request time: 0.001s | source
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codelord ◴[] No.43661966[source]
As an Ex-OpenAI employee I agree with this. Most of the top ML talent at OpenAI already have left to either do their own thing or join other startups. A few are still there but I doubt if they'll be around in a year. The main successful product from OpenAI is the ChatGPT app, but there's a limit on how much you can charge people for subscription fees. I think soon people expect this service to be provided for free and ads would become the main option to make money out of chatbots. The whole time that I was at OpenAI until now GOOG has been the only individual stock that I've been holding. Despite the threat to their search business I think they'll bounce back because they have a lot of cards to play. OpenAI is an annoyance for Google, because they are willing to burn money to get users. Google can't as easily burn money, since they already have billions of users, but also they are a public company and have to answer to investors. But I doubt if OpenAI investors would sign up to give more money to be burned in a year. Google just needs to ease off on the red tape and make their innovations available to users as fast as they can. (And don't let me get started with Sam Altman.)
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falcor84 ◴[] No.43662449[source]
> Google can't as easily burn money

I was actually surprised at Google's willingness to offer Gemini 2.5 Pro via AI Studio for free; having this was a significant contributor to my decision to cancel my OpenAI subscription.

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ff4 ◴[] No.43662747[source]
Google offering Gemini 2.5 Pro for free, enough to ditch OpenAI, reminds me of an old tactic.

Microsoft gained control in the '90s by bundling Internet Explorer with Windows for free, undercutting Netscape’s browser. This leveraged Windows’ dominance to make Explorer the default choice, sidelining competitors and capturing the browser market. By 1998, Netscape’s share plummeted, and Microsoft controlled access to the web.

Free isn’t generous—it’s strategic. Google’s hooking you into their ecosystem, betting you’ll build on their tools and stay. It feels like a deal, but it’s a moat. They’re not selling the model; they’re buying your loyalty.

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falcor84 ◴[] No.43663010[source]
The joke's on them, because I don't have any loyalty to an LLM provider.

There's very close to zero switching costs, both on the consumer front and the API front; no real distinguishing features and no network effects; just whoever has the best model at this point in time.

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1. InsideOutSanta ◴[] No.43663127{3}[source]
I'm assuming Google's play here is to bleed its competitors of money and raise prices when they're gone. Building top-tier models is extremely expensive and will probably remain so.

Even companies that do it "on the cheap," like DeepSeek, pay tens of millions to train a single model, and total expenditures for infrastructure and salaries are estimated to surpass $1 billion. This market has an extremely high cost of entry.

So, I guess Google is applying the usual strategy here: undercut competition until it implodes and buy up any promising competitors that arise in the future. Given the current lack of market regulation in the US, this might work.

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2. Nuzzerino ◴[] No.43663535[source]
They’ll also need a fleet of humanoid robots eventually to compete with Elon’s physical world data collection plans.
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3. codethief ◴[] No.43663862[source]
Too bad they sold Boston Dynamics :)
4. datavirtue ◴[] No.43664493[source]
Yeah, they just have to make it through the hype and innovation cycle.