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Alphabet announces $80B equity capital raise to expand AI infra and compute

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Re: Alphabet announces $80B equity capital raise to expand AI infra and compute

#101

Post by WarmWash »

sumoboy wrote: post #37
mitchell_h wrote: post #23

Earlier quoted context omitted.

I use anthropic's models daily, and sometimes switch to Gemini. Google is losing the marketing front BADLY, but their AI service is surprisingly great. It's far cheaper than anthropic for one. and for my kind of research it's just better.

I think Google is a bit sandbagging here knowing they have all the data and likely better models hiding. My theory is it's a bit of not disrupting the stock market direction by exposing whose really the boss. If they can do it cheaper, faster, and better, people start asking questions, especially with upcoming IPO's.

It's important to remember that the cloud division, rapidly becoming Google's golden goose, does not give one fuck about Gemini and would happily sell out all of Gemini's compute to Anthropic and OAI if given the opportunity.

Re: Alphabet announces $80B equity capital raise to expand AI infra and compute

#102

Post by mbesto »

onlyrealcuzzo wrote: post #84
afavour wrote: post #69

It’s difficult to avoid the feeling that a horrible financial reckoning is on the way. All these big tech firms are spending wildly to make sure they are the one on top at the end of it all. But whoever that ends up being there’s going to be one hell of a lot of fallout underneath them.

I don't understand where this $80B, +$150B for SpaceX, +$??B for each Anthropic and OpenAI is going to come from. There's not that much cash sitting around. Something is gonna need to get sold to transfer into those assets. Unless central banks are just going to print money to invest in these companies, I don't know who else is going to be able to take on enough debt to prevent massive sell offs somewhere for this. I…

(1) There is currently $1T in dry powder in private capital markets

(2) Middle east oil money (Saudi Aramco's profit every year is $100B+)

(3) Public traders have been and are looking to cycle out of other investments into higher growth areas.

Re: Alphabet announces $80B equity capital raise to expand AI infra and compute

#103

Post by WarmWash »

onlyrealcuzzo wrote: post #98
impulser_ wrote: post #89

Earlier quoted context omitted.

I don't think you understand the size of the US capital market. We are talking probably ~150 trillion. It's easy as fuck for Google to raise this money because they are a money printing business. They are the most profitable company in the world, so for anyone this is basically the same as buying US debt.

> We are talking probably ~150 trillion. Yes, but we are talking about liquidity not valuations...

Believe it or not there is actually a shortage of assets and an excess of money. That's in part why valuations are so bonkers.

Re: Alphabet announces $80B equity capital raise to expand AI infra and compute

#104

Post by B-Con »

tptacek wrote: post #5
mgh95 wrote: post #3

Interesting how the market has reacted to this news (down 1.7% after hours)

Well, I mean, you'd expect this move to mechanically push share prices down.

They added $80 out of a $4.5T market cap, which means redistributing ~1.67% of value from shares outstanding to the new shares.

So being down 1.7% is literally exactly what you'd expect.

Re: Alphabet announces $80B equity capital raise to expand AI infra and compute

#105

Post by impulser_ »

onlyrealcuzzo wrote: post #98
impulser_ wrote: post #89

Earlier quoted context omitted.

I don't think you understand the size of the US capital market. We are talking probably ~150 trillion. It's easy as fuck for Google to raise this money because they are a money printing business. They are the most profitable company in the world, so for anyone this is basically the same as buying US debt.

> We are talking probably ~150 trillion. Yes, but we are talking about liquidity not valuations...

This is equities + bonds which are pretty liquid assets.

Re: Alphabet announces $80B equity capital raise to expand AI infra and compute

#106

Post by jgalt212 »

enos_feedler wrote: post #34
mitchell_h wrote: post #23

Earlier quoted context omitted.

I use anthropic's models daily, and sometimes switch to Gemini. Google is losing the marketing front BADLY, but their AI service is surprisingly great. It's far cheaper than anthropic for one. and for my kind of research it's just better.

who cares about marketing when you have distribution? Probably a smart move to pump dollars into the product and not the marketing.

in high margin businesses, customer acquisition is everything.

Re: Alphabet announces $80B equity capital raise to expand AI infra and compute

#107

Post by tayo42 »

f0rgot wrote: post #94
bel8 wrote: post #17

Earlier quoted context omitted.

They know Google has a ton of data to train LLMs on. Recently I have been asking YouTube's new AI about some videos ("when is Steam metrics mentioned in the video?" for example), which means they also index videos. This is an unthinkable amount of data. I'm actually impressed at how bad Alphabet is with LLMs since they invented the thing as we know AND have all the data to train on, yet OpenAI and Anthropic are eatin…

Are you sure it’s not using transcripts? That would be equally useful but technologically less impressive.

Turning all of those annoyingly verbose and long YouTube videos into text that could be searched, summarized and referenced easily would be amazing

Re: Alphabet announces $80B equity capital raise to expand AI infra and compute

#108

Post by deathanatos »

protocolture wrote: post #93
1298716 wrote: post #25

[flagged]

Hey 3 hour old account, how will we keep you accountable when they successfully IPO? Like I am a downer on these companies too but idiots are lining up to buy.

They are stating they believe they're one of like the top 10 or 20 biggest companies in the world, across all industries. The statement is ludicrous.

… but as you say, idiots are lining up.

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