Google can grab AI trade in a ‘winner take most’ scenario
00:00 Speaker A
As you mentioned, Gemini has been gaining some steam lately in the sense that more people are using it. and that has dispersed the AI business to some extent, right? We’ve seen Alphabet shares definitely take off in recent weeks. How do you think about the arms race within AI right now and who might win and whether you should be thinking that way from an investment perspective?
00:31 Speaker B
Yes, no, of course, whatever the history of the consumer internet, wheels, network effects, whatever word you want to use, you often encounter the winner-takes-most or winner-takes-all scenario, even if there is no winner. And, you know, our favorite idea from 2025 was Google. And I think, you know, we’ve been pleased and fortunate to see this kind of coming together here recently, punctuated by the launch of Gemini 3, which creates new capabilities and then of course the launch of the AI overviews, the AI mode, and the Gemini app itself. And I think, with Google having that distribution, we continue to like the potential for potentially a winner, maybe a winner-take-all but potentially a winner-take-most scenario, and that’s how we sit today. And frankly, even in the last few weeks there’s been a lot of news flow on this topic and maybe some fixes, if we can say that Open AI is pursuing it, it’s hard to know exactly what’s going on there. But we certainly continue to feel that Google is very, very well positioned from a consumer perspective.
02:08 Speaker A
So Google won the first one, so it won search, right? You can say that the vast majority of searches are clear winners. So there were also some regulatory challenges. So what lessons do you think Google or Alphabet can take from this and apply to this fight in terms of promoting adoption?
02:51 Speaker B
Yeah, so the regulatory stuff is tough. I think at this stage where we’re still very, very early in the adoption of these chatbot tools, you should try to create the best product and the best situation you can for the users. and let the chips fall where they can. I think, you know, just yesterday we flagged the VP of Google, I think search said, look, we want to create a scenario, we want to create a user experience where you don’t have to search for different things in different places. We love these kinds of explanations. We think it’s very, very interesting from the user experience where people are still using Google for facts and chatting with GPT for other kinds of things. So I think they focus on building the best product. Could there be regulatory pressure on the way? Definitely. It’s similar to what you just brought up with the search, but it’s still very early in the game at this stage, I think we should just assume or or or ignore it.
