Google's Quiet AI Domination: A SpaceX-like Vertical Integration Strategy
2025-01-07
Since 2013, Google has been quietly building its AI empire. Starting with the development of TPUs, and vertically integrating the entire stack from chips to applications, Google has created a cost advantage that dwarfs its competitors. Their TPUs offer performance comparable to Nvidia's H100, but at a fraction of the cost (estimated 10x less). This strategic move, similar to SpaceX's vertical integration in space launch, allows Google to control its AI infrastructure and significantly reduce costs. While OpenAI chases massive funding rounds, Google's long-term vision and substantial resources ($24B in cash) demonstrate a different approach to AI dominance.
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