The Lockheed Martin partnership really highlights how GOOG is positioning for revenue streams that don't depend on consumer advertising or cloud margins. Running Gemini on air gapped infrastructure for defense contractors is a completely different business model than what they've built with Search or YouTube. The compute divide you mentioned is also why Google's capex on TPUs and data centers is so strategic, because controlling the infrastructure means they can offer both the public cloud and the private on prem solutions. Most investors are still thinking about GOOG as an ad company when they're clearly building towards being the AI compute layer for both commercial and goverment customers.
@robotsandchips absolutely! Google is repositioning itself as the foundational AI compute layer. While investors have historically (and correctly) valued Google as an advertising company, its current strategy shows a clear pivot. The goal is to own the underlying "picks and shovels" of the AI revolution.
The Lockheed Martin partnership really highlights how GOOG is positioning for revenue streams that don't depend on consumer advertising or cloud margins. Running Gemini on air gapped infrastructure for defense contractors is a completely different business model than what they've built with Search or YouTube. The compute divide you mentioned is also why Google's capex on TPUs and data centers is so strategic, because controlling the infrastructure means they can offer both the public cloud and the private on prem solutions. Most investors are still thinking about GOOG as an ad company when they're clearly building towards being the AI compute layer for both commercial and goverment customers.
@robotsandchips absolutely! Google is repositioning itself as the foundational AI compute layer. While investors have historically (and correctly) valued Google as an advertising company, its current strategy shows a clear pivot. The goal is to own the underlying "picks and shovels" of the AI revolution.