Ben Thompson says Meta and Google are making more money using AI

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Ben Thompson says Meta and Google are making more money using AI to improve their ads than the labs are from selling it: "The biggest monetization right now is probably not in Anthropic or OpenAI. It's the incremental gain that is happening for Google and Meta." "They can actually validate their image creation and their text creation in a way no one else can. Their validation is the ad marketplace, running a gazillion A/B tests to see what works. Most ads don't convert." "What do LLMs do?…

Patrick OShaughnessy@patrick_oshagAug 18

My conversation with @benthompson. Ben has been writing Stratechery for over a decade and remains one of my favorite business thinkers. We covered a lot. Every important company in the industry and the forces acting on all of them. - Why he thinks it would be problematic for the US to win the AI race - Will we run out of money to fund AI - Google becoming Berkshire Hathaway - Why ads are amazing - TSMC, Intel, and Samsung - Nvidia's invisible price cuts + biggest competitors - Microsoft, Amazon, Apple, and Meta I love talking to Ben about everything happening in markets and technology. Enjoy! TIMESTAMPS 0:00 Intro 0:59 America and the AI Race 8:26 AI’s Funding Problem 15:31 AI’s Capabilities and Limits 20:30 Aggregation Theory, AI, and Ads 31:10 Compute, TSMC, and Intel 47:31 Amazon and Apple’s AI Moats 54:43 The Frontier AI Players 74:07 Nvidia and Commoditized Intelligence 82:52 What Survives an AI Bubble?

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