Bill Ackman

When people click on the search term and end up buying something and I pay, it's a very high return on investment for the advertiser and they really dominate that market. Now, AI, of course, is a risk. If all of a sudden people start searching or asking questions of ChatGPT and don't start with the Google search bar, that's a risk to the company.

And so our view, based on work we had done and talked to industry experts, is that Google, if anything, by virtue of the investment they've made, the time, the energy that people put into it, We felt their AI capabilities were, if anything, potentially greater than Microsoft Chat GPT and that the market had overreacted.

And so our view, based on work we had done and talked to industry experts, is that Google, if anything, by virtue of the investment they've made, the time, the energy that people put into it, We felt their AI capabilities were, if anything, potentially greater than Microsoft Chat GPT and that the market had overreacted.

And so our view, based on work we had done and talked to industry experts, is that Google, if anything, by virtue of the investment they've made, the time, the energy that people put into it, We felt their AI capabilities were, if anything, potentially greater than Microsoft Chat GPT and that the market had overreacted.

And because Google, you know, is a big company, global business, regulators scrutinize it incredibly carefully. They couldn't take some of the same liberties a startup like OpenAI did in releasing a product. And I think Google took a more cautious approach in releasing an early version of BARD in terms of its capabilities. And that let Lamarck the world to believe that they were behind.

And because Google, you know, is a big company, global business, regulators scrutinize it incredibly carefully. They couldn't take some of the same liberties a startup like OpenAI did in releasing a product. And I think Google took a more cautious approach in releasing an early version of BARD in terms of its capabilities. And that let Lamarck the world to believe that they were behind.

And because Google, you know, is a big company, global business, regulators scrutinize it incredibly carefully. They couldn't take some of the same liberties a startup like OpenAI did in releasing a product. And I think Google took a more cautious approach in releasing an early version of BARD in terms of its capabilities. And that let Lamarck the world to believe that they were behind.

And we ultimately concluded they're tied or ahead, and you're paying nothing for that potential business. And they also have huge advantages. You think of all the data Google has, like the search data, all the various applications, email and otherwise, and the Google suite of products. It's an incredible data set. So they have more training data than pretty much any company in the world.

And we ultimately concluded they're tied or ahead, and you're paying nothing for that potential business. And they also have huge advantages. You think of all the data Google has, like the search data, all the various applications, email and otherwise, and the Google suite of products. It's an incredible data set. So they have more training data than pretty much any company in the world.

And we ultimately concluded they're tied or ahead, and you're paying nothing for that potential business. And they also have huge advantages. You think of all the data Google has, like the search data, all the various applications, email and otherwise, and the Google suite of products. It's an incredible data set. So they have more training data than pretty much any company in the world.

They have incredible engineers. They have enormous financial resources. So that was kind of the bet. And we still think it's probably the cheapest of the big seven companies in terms of the price you're paying for the business relative to its current earnings. It also is a business that has a lot of potential for efficiency.

They have incredible engineers. They have enormous financial resources. So that was kind of the bet. And we still think it's probably the cheapest of the big seven companies in terms of the price you're paying for the business relative to its current earnings. It also is a business that has a lot of potential for efficiency.

They have incredible engineers. They have enormous financial resources. So that was kind of the bet. And we still think it's probably the cheapest of the big seven companies in terms of the price you're paying for the business relative to its current earnings. It also is a business that has a lot of potential for efficiency.

You know, sometimes when you have this enormously profitable dominant company, All of the technology companies in the post-March 20 world grew enormously in terms of their teams, and they probably overhired. You've seen some, the Facebooks of the world, and now even Google, starting to get a little more efficient in terms of their operations. We paid a low multiple for the business.

You know, sometimes when you have this enormously profitable dominant company, All of the technology companies in the post-March 20 world grew enormously in terms of their teams, and they probably overhired. You've seen some, the Facebooks of the world, and now even Google, starting to get a little more efficient in terms of their operations. We paid a low multiple for the business.

You know, sometimes when you have this enormously profitable dominant company, All of the technology companies in the post-March 20 world grew enormously in terms of their teams, and they probably overhired. You've seen some, the Facebooks of the world, and now even Google, starting to get a little more efficient in terms of their operations. We paid a low multiple for the business.

One way to think about the value of the business is the price you pay for the earnings. Or alternatively, what's the yield? If you flip over the price over the earnings, it gives you kind of the yield of the business. So a 15 multiple is about almost a 7.5% yield. And that earnings yield is growing over time as the business grows.

One way to think about the value of the business is the price you pay for the earnings. Or alternatively, what's the yield? If you flip over the price over the earnings, it gives you kind of the yield of the business. So a 15 multiple is about almost a 7.5% yield. And that earnings yield is growing over time as the business grows.

One way to think about the value of the business is the price you pay for the earnings. Or alternatively, what's the yield? If you flip over the price over the earnings, it gives you kind of the yield of the business. So a 15 multiple is about almost a 7.5% yield. And that earnings yield is growing over time as the business grows.

That's compared to what you can earn lending your money to the government, 4%. That's a very attractive going in yield. And then there's all kinds of what we call optionality in all the various businesses and investments they've made that are losing money. They've got a cloud business that's growing very rapidly, but they're investing basically 100% of the profits from that business in growth.