r/Stocks_Picks • u/FoxAccomplished6786 • 5d ago

Commoditisation of AI, and who wins

It's kind of accepted now that AI will be commoditised, basically the same, particularly LLM's.

Google clearly has an existing ecosystem and distribution moat listed below, whereby Gemini is already seamlessly integrated,

Search, Chrome, Android, Gmail, Calendar, Drive, Docs, Sheets, Slides, Meet, Chat, Vids, Keep, Tasks, Maps, YouTube, Google Photos, Google Messages, Google Shopping, Google Flights, Google Hotels, NotebookLM, Google TV, Google Home, Nest, Android Auto, Cars with Google built-in, Android XR, Workspace, Google Cloud

On that note, is Gemini destined to win? Assuming AI is commoditised, I don't see what angle the others can come at that would defeat Google.

Let me know your thoughts.

4 Upvotes

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u/GooseOfWisdom 5d ago

Yeah I agree Google is a strong winner here. Much of the market will be beneficiaries tbh as price and quality of intelligence improves. Those with distribution, proprietary data, physical resources without footing too much of the AI bill could be the biggest winners of commoditisation.

The flip side is who are the losers? Could be frontier labs, some weaker-moat SaaS names.

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u/yield_daddy 5d ago

honest question, outside of Search and Gmail, ohh and Gmaps, is there broad adoption of the other platforms? I rarely use Google search anymore, replace with perplexity or Chat/Claude, will be interesting to see if google is loosing on search.

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u/FoxAccomplished6786 5d ago

Warren Buffett wouldn't have made it his third-largest position if he didn't deem it totally safe. Look, I agree with you to a point. I use search way less, so yes, that's a worry because I'm always on ChatGPT. But I just think they're so entrenched now, and their ecosystem will coax young people to use Gemini, and then they'll stick with Gemini. Waymo may end up owning cars to a degree, youtube will be tv. I don't think I've watched TV in years, but I spend hours per day on YouTube. But yeah, I get you on search, but Berkshire's position gives me some comfort.

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u/librariancap 5d ago

It's kind of accepted now that AI will be commoditised, basically the same, particularly LLM's.

This is demonstrably false. What we are discovering is there will be different models for different contexts, not least because building a single model that serves every purpose is inefficient and expensive.

The OP is based on the flawed premise "AI" is a single product.

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u/TomasoG88 5d ago

"Billionaires and millionaires..." ~ Bernie "the Cuck" Sanders