Google Cloud

“If I was to buy an H 100 for, let's say, 30,000 dollars, that's how much the, kind of, a single card would cost. If I wanted to rent an H 100 for one hour spot instance from GCP, it could cost me five dollars. If I rented it from, like, You know, Azure or AWS,…”

“Every dollar of, every piece of compute that you give to Google Cloud turns into 30% operating margins in a day because they can sell it to Entropic.”

“The challenges with these startup programs, Is they want companies that have, ultimately have a lot of money to spend, and it is giving away the razor to sell the blades type thing, or giving, you know, the first piece of candy is free, and they want you to st…”

“Well, if you look at Google Cloud, they posted 82% year-over-year revenue growth, which is something we've never seen in the history of these cloud providers.”

“We have compute from, effectively, many sources. So, Microsoft, obviously, is a big partner, important partner. We also have compute, as we have announced, from AWS, Ion Google. So, we have compute from all of the hyperscalers, effectively.”

“Meta platforms is developing plans for a cloud infrastructure business to sell access to AI computing power and models competing with industry leaders like AWS and GCP.”

“And for AWS and GCP and Azure, all the money Is in massive enterprise contracts with companies that have massive DevOps teams. So guess who they're building for? They're building for DevOps engineers.”

“When we started perplexity, we had like around 200,000 dollars worth of Amazon credits and GCP credits and Azure credits. That almost like together, cumulatively, this was worth like a million dollars in compute credits.”

“I think Google Cloud is going to start selling open AI models within the next couple of months based off of, you know, just kind of a hunch, right? So they're going to be the infrastructure layer that enables all three big models.”

“And I anticipate, and you know, given my conversations that I've had with Thomas Curry and the head of Google cloud platform, that it will come to Google fairly soon as well. He wants it there.”

“While Microsoft no longer has to pay revenue share back to open AI still has to pay it to Microsoft and they have to pay it even when they're using AWS or potentially Google in the future.”

“Here we have a clear 63% growth to twenty billion dollars in a quarter for Google Cloud is nuts.”

“Google Cloud, which includes the Google Suite, that grew 63% year on year. Let that number sink in. 63% on twenty billion in revenue. That's in a quarter.”

“Apparently Google Cloud is up because of Anthropic.”

“Anthropic is so underserved in compute that they're buying, like, in last minute deals and on the smart market and all that kind of stuff, which is bad for their margin, but is good for the providers.”

“Because the context, the mission-critical context of those workloads is so important to be run locally that you can't run them on Amazon, AWS, GCP, or Azure, and it's the first time In 15 years that the sort of hyperscaler dominance is up for grabs for startup…”

“As we add more functionality to it, just the right way to navigate this big product surface area is an AI that's read all the API docs for you.”

“The first is if you actually look at the market shares, Google Cloud, Azure, and AWS are actually in quite different businesses. AWS is mostly infrastructure. Microsoft is mostly services. Google is mostly scrambling to catch up in a very distant certain place…”

“It started getting really painful in like mid-twenty-twenty-four, because we were closing deals with Notion actually, that was running in AWS, and we're like, trust us, you really want us to run this in GCP? And they were like, no, I don't know about that, lik…”

“Like U.S. East, the Google, like the GCP and AWS data centers are like within a millisecond on each other on the public exchanges. But in Oregon, uniquely the GCP data center sits like a couple hundred kilometers, like east of Portland and the AWS region sits …”

“This workload still runs on GCP for what it's worth, right? Because it's so, it was just, it was so reliable. So it was never about moving off GCP.”

“I think the foundation model companies look a little bit like that. And I think in the apps layer, you're just going to have people that want to Consume the code they generate through a rich IDE and those that want to be closer to the metal, and that's probabl…”

“When I speak to Fortune 500, I can tell you without hesitation, they are all still talking about I need to move X percent of apps to GCP, AWS, Azure, some combination, Alibaba in Europe, whatever the case might be.”

“Google. By far. They have the compute. They're moving very fast. If Gemini at some point wins the race, like literally wins the race then they have the entire stack. Including like Google Cloud and whatever, whatever they need and they have the data and whatev…”

“They are migrating from AWS to GCP. Now that's the public news. And it's a strategic move by the company.”

“Google Cloud actively is doing that right now has grown from About three billion when I joined to now it's about forty billion as well.”

“Sundar basically like proudly saying, a 150 Google cloud customers processed one trillion tokens and then had some kind of standard case study metrics about email open rates and stuff like creating campaign efficiency. But when you actually map out the numbers…”

“AWS has a hundred twenty-four billion dollar revenue run rate. Microsoft, one hundred twenty billion, and Google Cloud, fifty four billion. But AWS, which is slightly larger than Microsoft, is only growing 17% year over year. Microsoft's 26% year over year, an…”

“So there's all these reasons why eventually all these three big companies will converge effectively, roughly a third. We're going to debate the path to get there, but that's where they'll end up.”

“And so my headline idea was basically open AI needs to build Google cloud before Google can build chat GPT.”

“They hired, like, 10,000 people into the go-to-market organization. I'm not exaggerating that, and that's on a base of a 150 people when he came in, most of which were seeded in California, not regionally distributed throughout the world.”

“And today, they're over fifty billion dollars in annual revenue run rate. It's growing 30% year over year. They're the fastest growing of the major cloud providers, five X in five years.”

“This group of, which has averaged about 10 to 12 people, currently nine, I think, have built a pretty Transformational and complex piece of software, which we can do a quick demo of later if you're interested. Using a complete web application development platf…”

“There have been some situations where we've talked to companies where they're like, no, like our founder believes in like we build this in house and we can be uniquely good at it. And obviously I'm biased, but that is just fundamentally not true. There's no on…”

“In the cloud super cycle, you know, you have about. Four hundred billion dollars of revenue that is being earned by the applications. Let's call it the layer one. You've got about two hundred billion spent on infrastructure. This is AWS and GCP and Azure, et c…”

“Microsoft's Productivity and business process segment, which is mostly office. I think LinkedIn is now part of this too. Last year generated over a hundred and twenty billion dollars in revenue. Google reports Workspace as part of the cloud segment. So all of …”

“So I think engineers there have job security for the foreseeable future, right? Because of the problem of stochasticity of these models and all of that, you need every line of code to be reviewed and managed very carefully.”

“Google Clouds revenue numbers disappointed, but this was because they didn't have enough GPUs and they were actually constrained. So they missed on top line, like they didn't bring in enough revenue, but their margins actually improved. And so what that means …”

“You saw the Google cloud outage the other day for hours, a lot of the cloud was down. So I'll give you an example. Vercel didn't go down”

“Well, I think all four of us would agree that if we could synthetically own AWS, Azure, and GCP, if I could somehow automagically create an index of all three of those businesses, right, over the next five years, you wouldn't need to own anything else.”

“I think GV's investments are actually, Less than half actually use Google Cloud, so it's not like they lock us into, to Google.”

“All of the core large scale cloud platforms, they have so many tools and serve so many audiences that it's impossible just to get started.”

“Last year, we exited a combination of YouTube and cloud at hundred and ten billion dollars.”

“Looking at twenty-twenty-five and looking at the compute part of the span half of that is going towards our cloud business in twenty-twenty-five.”

“We are supply constrained this year in our cloud business”

“AWS revenue is two billion dollars in India. Microsoft Azure is a billion and I think GCP is somewhere close to a billion. So total overall India spends roughly including the small players, five billion dollars a year on cloud”

“I think so many of these models are like hyper competitive in terms of what their performance and output actually looks like. So you can build incredible experiences off of those that can swap pretty easily between them. Yeah, I would think of them more like m…”

“Ford Motor Company, for example, when they brought their, ah, they wanted to use our chips and our system called TPU, Tensor Processing Unit, to model air flow and wind tunnel simulation using Computers rather than physical wind tunnels, so they're doing that …”

“We have over two million developers building every day, every morning, every night using our AI platform”

“We offer 200 models in our platform.”

“The only model we don't offer today is OpenAI, and that's not because we don't want to offer their model.”

“Our field is not compensated any differently. Our partner ecosystem is able to use all the models in the platform, and most importantly, we have very large Anthropic customers running on GCP.”

“If you don't have your own model, or you have a model of your own, but it's terrible, naturally you're going to say something like that.”

“In fact, we're staging models out to the developer ecosystem within a matter of a few hours after they're finally built.”

“And one benefit we have at Google is all our services, whether that's search or us or YouTube, this inferencing of the same stack and same model series. So the model learns very quickly from all that reinforcement learning feedback and gets better and better.”

“There are gains to be had. I don't think they will be at the same ratio as earlier because just, you know, there's always a lot of diminishing returns at some point. I don't think we are at the point where there are no more gains, but I think we won't see the …”

“Like if you look at just 2024, we've reduced the cost of inferencing, and you can see it in our prices of the models by a factor of 20 times.”

“Yes. We're very proud of it, yes.”

“It requires people to change the way they work, and we want to drive daily usage of AI, and because it change, needs to change the way they work, you want them to get used to using it. If, hey, this group of users in a company gets it, that group of users is n…”

“We've helped them build something called a personal research assistant, so that if I am a call center person, and you call me saying, here is my set of issues, and we can, how long does it take to research that information and put it back in front of you, so t…”