Why is the leader of AI good 1. Jevons Paradox: The cheaper the intelligence, the more Google earns The mistake made by most analysts is that they believe that the decrease in AI inference costs will not only reduce profits, but also lead to deflation. absolutely wrong. Logic: When the efficiency of a resource (computing power/intelligence) increases and the cost decreases, its total consumption will not decrease, but will explode exponentially. Google's advantage: Google has self-developed TPU (Tensor Processing Unit). Unlike Microsoft/Meta, which must pay a "toll fee" (to purchase GPUs) to Nvidia, Google's computing power costs are internally priced. As the marginal cost of intelligence approaches zero, the global demand for "tokens" (the smallest unit of intelligence) will be one million times greater than it is now. Previously: You searched for 'the best toothbrush', consumed several queries, and Google earned one advertising fee. Quickly: Your AI agent will read 1000 toothbrush reviews for you, analyze ingredients, compare prices, and place orders for purchase. Millions of tokens were consumed during this process. Conclusion: Even if each token only earns a negligible amount of money, x1, The usage of 000000 will create a revenue scale tens of times larger than the current advertising industry. Google is the only manufacturer that can provide this' infinite intelligence 'at an extremely low cost. Software as a Service (SaaS) is dead, but Service as Software is alive In the SaaS era, you buy software (such as Salesforce) and then hire people to use the software. In the era of AI, you directly buy 'results'. Business model restructuring: Google no longer sells traffic to Expedia or Booking, but its Gemini Agent directly helps you book flights and hotels. 3. The Only Full Stack Sovereign Why is Nvidia valuable? Because it sells shovels. But Google not only has shovels, but also gold mines and gold trucks. Hardware layer: TPU v6/v7+proprietary data center+nuclear layout. Google's computing power autonomy means that its gross margin will crush Microsoft and OpenAI, which rely on NVIDIA, in the long run. Model layer: Gemini is a native multimodal model that grows directly from YouTube video data. This is a moat that OpenAI cannot replicate (OpenAI must buy data). Entry layer: Android and Chrome. When AI becomes the operating system on mobile phones, Google has the distribution rights to 3 billion terminals worldwide. Soon: The market will give this' full stack monopoly 'a very high premium because it has no weaknesses and cannot be defeated by single dimensional competitors such as OpenAI, which only makes models, or Nvidia, which only makes chips. 4. Waymo: Google Search for the Physical World The current valuation of Waymo is based on the 'taxi business'. This is linear. Index perspective: Waymo is the Embodied AGI of the physical world. Inference: Waymo not only transports people, but also everything (logistics, food delivery). More importantly, Waymo OS (auto drive system) will be licensed to global car companies like Android. Data: Waymo's mileage is currently growing exponentially. By 2030, if Robotaxi replaces Uber/Lyft in major US cities and expands to logistics, Waymo alone could support a market value of $3-5 trillion (referring to Tesla's most optimistic Robotaxi valuation model). The non-linear valuation logic of business sector roles has the potential to contribute to 30% of the global AI inference needs supported by Google Cloud and TPU world computers. Similar to the current 'power company'. 6-8 trillion Agenetic Search's global economy's operating system has shifted from advertising fees to transaction commissions. Take over the entry points of e-commerce, tourism, and service industries. 8-10 trillion Waymo physical transmission network monopolizes autonomous driving travel and logistics operating systems. 3-5 trillion other (YouTube/Bio) attention and life science video generation, AI pharmaceuticals (Isomorphic Labs). 1-2 trillion in total~Market value can offset $20 trillion In 2030, Google=Nvidia (chip)+Microsoft (OS)+Amazon (cloud)+Uber (transportation).