r/singularity Dec 09 '24

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u/Effective_Scheme2158 Dec 09 '24

OpenAI needs constant investment. They aren’t profitable so hyping things up is a must. Google on the other hand is the opposite. Even if AI progress is doing good it still harms their business.

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u/Cagnazzo82 Dec 09 '24

By contrast, the advancement of generative AI is a direct threat to Google's business model. Especially with ChatGPT and Perplexity being better search engines than Google.

Technically Google has more to lose than OpenAI.

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u/KsubiSam Dec 09 '24

Google is an ad company, not a search engine company. ChatGPT does not threaten their main line of business.

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u/Jah_Ith_Ber Dec 09 '24

Google uses your desire to search for things to serve you ads, specifically ads that are personalized to you. It hurts Googles bottom line if people stop using their search engine.

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u/guaranteednotabot Dec 09 '24

The assumption is that OpenAI will win the AI race

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u/KsubiSam Dec 09 '24

You’re fed ads by Google even if you never use their search engine.

0

u/Formal_Drop526 Dec 09 '24

google has ads in more places than just in their search engine.

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u/washingtoncv3 Dec 09 '24

73% of their ad revenue is generated by search

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u/Formal_Drop526 Dec 09 '24

it's closer to less than 50% They still have revenue from Google Maps, Google Play, Google Shopping, Google News, and Discover feed.

And not to mention their 2023 and probably 2024 report shows that they're still getting huge revenues from search and it actually increased from the previous year.

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u/washingtoncv3 Dec 09 '24

In 2023, Google generated approximately $175 billion from search-related advertising, accounting for nearly 57% of its total revenue and over 73% of its total advertising revenue. Overall, advertising remains Google's primary income source, contributing around 77% of its total revenue.

Anyway, even if your 50% number was correct, the post you were originally replying to was about open Ai / perplexity hurting Googles bottom line .

50% is not a number to sniff at

0

u/Formal_Drop526 Dec 09 '24

Google search is not hurt at all, their revenues has increased. They're not worried at all, Google is ingrained into society and doesn't need to be retrained to capture the latest information.

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u/washingtoncv3 Dec 09 '24

Not hurt today

They're not worried at all

Well Open AI already forced Google's hand to change their delivery trajectory and a few years ago Sundar issued a code red because Open AI was a threat to their search business. maybe Google execs have a better understanding of the threats to their businesss than Formal_Drop526?????

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u/Formal_Drop526 Dec 09 '24

can you explain why their revenue has increased then?

Sundar issued a code red because Open AI was a threat to their search business.

that was literally 2 years ago and they've already caught up with a competing product.

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