Aravind Srinivas

Why did Amazon build the cloud business before Google did, even though Google had the greatest distributed systems engineers ever, like Jeff Dean and Sanjay, and built the whole MapReduce thing? server racks because cloud was a lower margin business than advertising. There's literally no reason to go chase something lower margin instead of expanding whatever high margin business you already have.

Why did Amazon build the cloud business before Google did, even though Google had the greatest distributed systems engineers ever, like Jeff Dean and Sanjay, and built the whole MapReduce thing? server racks because cloud was a lower margin business than advertising. There's literally no reason to go chase something lower margin instead of expanding whatever high margin business you already have.

Whereas for Amazon, it's the flip. Retail and e-commerce was actually a negative margin business. So... For them, it's like a no-brainer to go pursue something that's actually positive margins and expand it.

Whereas for Amazon, it's the flip. Retail and e-commerce was actually a negative margin business. So... For them, it's like a no-brainer to go pursue something that's actually positive margins and expand it.

Whereas for Amazon, it's the flip. Retail and e-commerce was actually a negative margin business. So... For them, it's like a no-brainer to go pursue something that's actually positive margins and expand it.

Your margin is my opportunity. Whose quote is that, by the way? Jeff Bezos. Like he applies it everywhere. Like he applied it to Walmart and physical brick and mortar stores because they already have, like it's a low margin business. Retail is an extremely low margin business.

Your margin is my opportunity. Whose quote is that, by the way? Jeff Bezos. Like he applies it everywhere. Like he applied it to Walmart and physical brick and mortar stores because they already have, like it's a low margin business. Retail is an extremely low margin business.

Your margin is my opportunity. Whose quote is that, by the way? Jeff Bezos. Like he applies it everywhere. Like he applied it to Walmart and physical brick and mortar stores because they already have, like it's a low margin business. Retail is an extremely low margin business.

So by being aggressive in like one day delivery, two day delivery, burning money, he got market share in e-commerce and he did the same thing in cloud.

So by being aggressive in like one day delivery, two day delivery, burning money, he got market share in e-commerce and he did the same thing in cloud.

So by being aggressive in like one day delivery, two day delivery, burning money, he got market share in e-commerce and he did the same thing in cloud.

Right now, yes. But that doesn't mean it's the end of the world for them. That's why this is a very interesting game. And no, there's not going to be one major loser or anything like that. People always like to understand the world as zero-sum games.

Right now, yes. But that doesn't mean it's the end of the world for them. That's why this is a very interesting game. And no, there's not going to be one major loser or anything like that. People always like to understand the world as zero-sum games.

Right now, yes. But that doesn't mean it's the end of the world for them. That's why this is a very interesting game. And no, there's not going to be one major loser or anything like that. People always like to understand the world as zero-sum games.

This is a very complex game, and it may not be zero-sum at all, in the sense that the more and more the business, the revenue of cloud and YouTube grows, the less is the reliance on advertisement revenue, right? And so the margins are lower there. So it's still a problem. And they are a public company. There's public companies that has all these problems.

This is a very complex game, and it may not be zero-sum at all, in the sense that the more and more the business, the revenue of cloud and YouTube grows, the less is the reliance on advertisement revenue, right? And so the margins are lower there. So it's still a problem. And they are a public company. There's public companies that has all these problems.

This is a very complex game, and it may not be zero-sum at all, in the sense that the more and more the business, the revenue of cloud and YouTube grows, the less is the reliance on advertisement revenue, right? And so the margins are lower there. So it's still a problem. And they are a public company. There's public companies that has all these problems.

Similarly for Perplexity, there's subscription revenue. So we're not as desperate to go make ad units today. Maybe that's the best model. Like Netflix has cracked something there where there's a hybrid model of subscription and advertising. And that way you don't have to really go and compromise user experience and truthful, accurate answers at the cost of having a sustainable business.

Similarly for Perplexity, there's subscription revenue. So we're not as desperate to go make ad units today. Maybe that's the best model. Like Netflix has cracked something there where there's a hybrid model of subscription and advertising. And that way you don't have to really go and compromise user experience and truthful, accurate answers at the cost of having a sustainable business.

Similarly for Perplexity, there's subscription revenue. So we're not as desperate to go make ad units today. Maybe that's the best model. Like Netflix has cracked something there where there's a hybrid model of subscription and advertising. And that way you don't have to really go and compromise user experience and truthful, accurate answers at the cost of having a sustainable business.