Google to undercut large language model players
The guest argued that Google is a sleeper threat that can 'Microsoft' competitors like OpenAI and Anthropic by giving away its performative Gemini model for free.
The argument
The guest noted that roughly 70% of OpenAI's $13 billion in revenue comes from $20-a-month consumer subscriptions. Because Google's core business is funded by search advertising, it can afford to offer Gemini and its adjacent tools (like NotebookLM and video generation) for free, destroying the subscription-based revenue growth models of pure-play AI startups.
The thesis, stress-tested
✓ What validates it
- ✓Slowing subscriber growth or rising churn rates at OpenAI and Anthropic
- ✓Increased enterprise and consumer adoption of Gemini integrated into Google Workspace
▸ Risks discussed
- ▸Antitrust or regulatory actions targeting Google's search dominance
- ▸High infrastructure costs of running free models at massive scale
Hear it yourself
"Google can Microsoft these large language model players, and the presumptive revenue growth at OpenAI and Anthropic, etcetera, would get hit. Today, roughly 13,000,000,000 of revenue at OpenAI, 70% of that revenue is from $20 a month paying subscribers like me."
00:00 / 00:17
AFFILIATE LINK · ZORTIX MAY EARN A COMMISSION · NEVER A RECOMMENDATION TO TRADE