00:00 Speaker A
Uh and I think the big thing with Alphabet is, as we discussed yesterday, multiple levers outside of just the AI trade to lean on here.
00:08 Speaker B
Mhm.
00:08 Speaker A
Um, and a couple of things that I wrote down. So, taking the AI trade, Google Cloud up 60 63% year over year, backlog almost doubling. Um, on the GCP side, uh 40% increase in Gemini Enterprise. Interesting for them to call that out that you know, hey, it’s not just an Anthropic and OpenAI story.
00:27 Speaker A
But then you get to, you know, half a million autonomous rides from Waymo per week, 200 million, um, or I think it was 300 million subscribers, uh, across YouTube and other products. So, they have all these other pieces of the business which uh are exciting and they were able to call out as, you know, as really performers here. And they also, Alphabet also increased their capex forecast, but uh only by $5 billion, so by a little bit less than Meta and given their forecast higher overall, less, you know, intensity on a relative basis.
00:57 Speaker B
And they also raised their dividend. Did you see that?
00:58 Speaker A
And they raised their dividend. So like the yeah, there’s there’s multiple things to go. I did not see that actually. Um but there are just multiple levers for Google and I think that that is really what’s coming through in the stock reaction.
01:05 Speaker B
And and I was struck by um Pichai’s Sundar Pichai saying AI is lighting up every part of the business.
01:12 Speaker A
Yeah.
01:12 Speaker B
So like trying to make the point here that even the stuff that is not the direct um Google Cloud, for example, is still benefiting from AI. I mean, and
01:23 Speaker B
you can believe that because you see it in the numbers, right? Um that that the all of the different
01:24 Speaker A
Yeah. Yeah.
01:28 Speaker B
you know, it’s firing on all all cylinders here. Um, you know, they are talking about what’s going on with costs also and here, you know, that comment I made earlier that they could be doing even more if they had more compute. I feel like their their comments around that were most acute of the companies. I mean, I think he said on the call, we are compute constrained in the near term, our cloud revenue would have been higher if we were able to meet the demand.
01:48 Speaker A
Yep.
01:49 Speaker B
So which is pretty extraordinary but it’s also pretty extraordinary considering how much they’re all spending and that they’re spending this much and they’re still not, you know, at that capacity.
02:01 Speaker A
Yeah, I mean, I don’t want to make every uh show we do about OpenAI, but it’s like these companies um have the most access to capital both via the markets and on their own balance sheet, and they’re basically saying we physically cannot get the product that we need. Um now the product that OpenAI needs is both the stuff these companies, like both the material as it were, uh for the AI trade, but also capital. This has been like the criticism of OpenAI. It’s like,
02:26 Speaker A
There’s not enough money in the world to finance the $7 trillion whatever Sam Altman was talking about a couple years ago, that they’re going to need to spend. And I think when a company the size and the company with the amount of resources that Alphabet has coming out and being like, we can’t get our hands on this stuff, it really shows like that theoretical, physical, um collision, I I guess you would say.
02:42 Speaker B
Yeah. The the other thing I wanted to highlight here
02:45 Speaker A
is what it was like in 1998 when we couldn’t get enough fiber on the ground. That’s what people were saying.
02:48 Speaker B
I don’t remember. I don’t know. I don’t I’m not old enough to remember that. Exactly. Um so, um the other thing I wanted to mention, sorry with uh Alphabet is the chip business.
02:50 Speaker A
I don’t know.
02:51 Speaker A
I’ll go back and ask myself. Exactly.
02:54 Speaker A
Yep.
02:54 Speaker B
Because they’re talking about now selling more TPUs to other companies, right? So I think that that is also um maybe not shocking, but like perhaps a pleasant surprise for investors on that front. So like again, just that they have this portfolio um of stuff that is working right now and that hardware is working too with um their TPUs. So that’s something else for investors to to point to and to like here.
03:20 Speaker A
Yep.
