• Google is the default in every browser and on every phone, and people have over two decades of habits of using Google for everything, making it difficult for competitors to gain traction.
• Google’s acquisition record is strong, and the company is well-placed to benefit from AI, with YouTube, Android, GCP, and DeepMind all being major assets.
• Microsoft is in talks to invest $10 billion into OpenAI, valuing the firm at $29 billion, and giving Microsoft a 49% stake.
• Microsoft’s investment is likely driven by its ability to offer attractive rates and monetize the output of OpenAI’s products, as well as its deep pockets and patience.
Published January 10, 2023. Visit Stratechery to read Ben Thompson’s original post.
