AI narrative is shifting towards Google with its complete stack, says Plexo Capital's Lo Toney

Core Viewpoint - The narrative around artificial intelligence (AI) is shifting towards Google, positioning it as a leading player in the AI race [1] Infrastructure and Vertical Integration - Google has successfully implemented vertical integration similar to Apple, creating a strong competitive advantage [2] - The company has built a comprehensive infrastructure, controlling models and applications, making it the only hyperscaler integrated across all three layers [3] TPU Development and Market Impact - Google has invested a decade in developing Tensor Processing Units (TPUs) optimized for its specific workloads, including search, YouTube, ads, and Gemini [4] - Recent advancements in TPUs have made Google competitive not only in application inference but also in training, traditionally dominated by NVIDIA [5] Competitive Landscape - Meta faces challenges in competing with Google due to its lack of a diverse product offering, limiting its ability to build similar vertical infrastructure [7] - Google is noted for its capital efficiency, which allows it to maintain software margins without heavy leverage, contrasting with Meta's financial strategy [8] Hybrid Model and Custom Silicon - The hybrid model involving both GPUs and TPUs is essential for optimizing performance across different tasks, allowing Google to cater to various customer needs [12]