Alex Wissner-Gross

And now, thanks to the AI tailwind and exposing both TPUs to their own customers, and now TPUs and TPU compute capacity to other frontier labs, also a very good move, arguably.

And then, maybe even offering TPUs for direct sale to other data centers.

I think Google Cloud not only has a fighting chance, but is arguably, as many others have mentioned, in a unique position from a vertical integration perspective.

to potentially leapfrog both AWS and Azure.

Yeah.

One thing I think most people don't realize is the situation is so severe, and this has been publicly reported, that even within Google, the three main compute consumers, which are Search, the historic user, Cloud, DeepMind, those three users, on a periodic basis, I think it's been reported once a week or once a month,

They all have to fight out new compute capacity that comes online for their respective divisions.

I do think this is a preview of the future where what gets prized ultimately, as we spoke about in a previous pod, what gets prized is per-token economic productivity.

The highest, most revenue-generating or most profit-generating tokens will ultimately receive the most compute.

And we're seeing this now, not just at the inter-Frontier Lab level, we've spoken in the past about how Anthropic's strategy seems squarely aimed at maximizing dollar value per token.

But similarly, even within Google, they're all fighting it out to see who can generate the most dollar value per token.

And I think that type of liquid market or auctions per token, that's the future we're going to find ourselves in.

Peter, credit where credit is due.

You turned my daily newsletter into non-investment investment advice.

Bravo.

It's still pretty close.

All right.

It goes in a single direction.

There are asymptotes involved.

Remember when Satya made that now infamous comment about how Microsoft was good for their $80 billion in sort of backhanded reference to not being good for supplying all of the voracious appetite for compute that OpenAI had basically demanded under their prior engagement with Microsoft?