Google is making money on selling cloud compute. Their margins have gone from 9% to 32%.
They're soaking up the investor bonanza into AI - Gemini ain't making them money.
For context Cloud Compute made 20bn in Q1, Other services made 90bn.
They're soaking up the investor bonanza into AI - Gemini ain't making them money.
For context Cloud Compute made 20bn in Q1, Other services made 90bn.
Comparing to ad revenue from a company like meta, the story that Gemini tokens are a strong cash drag on Google just doesn't add up. It seems at worst they are losing like 50 cents/1M tokens (including r&d spend, data centers, etc..), and very possible they are actually profitable per token.
Which is much better than anthropic and openai.