1. OpenAI is too large a supplier for LLMs, and they are trying to create supplier diversity
2. $2B is a drop in the bucket for Google. Even after the severe fall this month, the Google Market Cap is $1.536 Trillion. Consider the investment as a % of market cap
3. It is undeniable that small players can move fast, so even if Google's AI is amazing, the slope is probably not as high as a fast moving startup
4. These products have 2nd order revenue boosters -- you might use Anthropic's marketplace app, as a theoretical example, but you end up spending much more on compute/storage/cloud in doing so, helping the cloud majors
I would not consider the investment as a % of market cap since Google doesn't own all that market cap...
I would consider the non float shares + short term investments + cash on hand or Revenue/Profit better
> I would not consider the investment as a % of market cap since Google doesn't own all that market cap.
Market cap does matter because you can use it to gauge how easily Google could hypothetically raise the same amount[1] by issuing additional shares without a shareholder revolt.
Not seeing how that distinction matters. Google’s owners (shareholders) do own all that. And google represents the collective financial interests of the shareholders.
2. $2B is a drop in the bucket for Google. Even after the severe fall this month, the Google Market Cap is $1.536 Trillion. Consider the investment as a % of market cap
3. It is undeniable that small players can move fast, so even if Google's AI is amazing, the slope is probably not as high as a fast moving startup
4. These products have 2nd order revenue boosters -- you might use Anthropic's marketplace app, as a theoretical example, but you end up spending much more on compute/storage/cloud in doing so, helping the cloud majors