We tell the story of the single greatest business ever created: Google search. From its origins as a Stanford research project called BackRub, Google became the front door to the internet. Today it’s an essential service for over half the world, and one that generates more profit than ANY other US company — more than Apple, Microsoft, or Berkshire Hathaway.But it wasn’t always so obvious. When Larry and Sergey began working on BackRub in 1996, search was a backwater industry in silicon valley. Existing search companies were eking out a living as vendors to the then-dominant “portals” like AOL and Yahoo. Google’s come-from-behind success was the result of three massive step-function leaps forward in algorithms, infrastructure and business model… some invented by Google and some borrowed (and perfected!) by them.Today, things are not so obvious once again for Google. Despite earning more profits than all of its big tech peers, its stock trades at significantly lower multiples — a $1 trillion or more discount to Apple, Microsoft and Nvidia. Investors are concerned that AI will render Google’s beautiful business model obsolete, even though Google also basically invented modern AI and continues to lead on many dimensions. This episode begins a multi-part series where we dive into the full history that led us to this point. Tune in and enjoy!Sponsors:Many thanks to our fantastic Summer ‘25 Season partners:J.P. Morgan PaymentsAnthropicStatsigVercelLinks:BackRub recreationOriginal Google logoJeff Dean’s resumeWorldly Partners’ Multi-Decade Alphabet StudyEpisode sourcesRadio City Live Show:Join us July 15 at Radio City — Ticketmaster: https://acquired.fm/nycJuly 12 Central Park RunJuly 15 Pre-Show MeetupJuly 15 Afterparty at the Rockefeller Center RinkJuly 16 Encore Event with J.P. Morgan PaymentsCarve Outs:The Rehearsal with Nathan Fielder (Season 2)Your Friends and NeighborsAndor Season 2Gamecraft Season 3Steam Deck vs Switch 2 dilemmaMore Acquired:Get email updates with hints on next episode and follow-ups from recent episodesJoin the SlackSubscribe to ACQ2Check out the latest swag in the ACQ Merch Store!Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.
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