Google is Winning the AI Race by Stealing Exxon's Business Model. Here's How.

Core Insights - Alphabet (Google) has experienced significant stock performance improvement following a favorable court ruling regarding monopolistic advantages, outperforming other major tech companies in the "Magnificent 7" group [1][2] Group 1: AI Monetization and Market Position - Google has achieved a leading position in artificial intelligence (AI) monetization, with substantial capital flowing towards it from other hyperscalers [3] - The Gemini AI platform has seen an 8% increase in user growth in the last quarter, with a notable surge in web traffic following the introduction of new AI image generation tools [4] - Google’s tensor processing units (TPUs) are in high demand, offering a 50% productivity improvement over traditional Nvidia hardware, leading developers to switch to Gemini [5] Group 2: Financial Performance and Competitive Advantage - Google is generating income across various sectors, while competitors like OpenAI are incurring significant cash losses [6] - The company has adopted a vertical integration model similar to that of the oil industry, controlling its supply chain from chip design to cloud services, which enhances its competitive edge [7][8]