It's a big one. All of the most important mega cap tech companies and then Nvidia a little bit after that, but it's going to be big. For more on what to expect, let's welcome in Lo Tony.He's Plexo Capitals founding managing partners. Good to see you. Welcome back.>> Thanks for having me. >> How do you think next week's going to unfold. >> Well, I think it's going to be a bell weather for sure because we've had so much spend.It's almost like a space race with over $300 billion in capex on mostly AI infrastru ...

Core Insights - The article discusses the journey of Microsoft and its CEO Satya Nadella, highlighting the contrast between the failure of Bing and the success of Microsoft Azure, emphasizing that failures can lead to significant future successes [2][4][13] Group 1: Microsoft and Bing - Microsoft launched Bing in 2009 as a competitor to Google, but it has only captured 4% of the search engine market compared to Google's 90% [1][2] - Despite Bing's failure, Satya Nadella has risen to become Microsoft's Chairman and CEO, leading a company valued at US$3.7 trillion [2] - Nadella acknowledges that Google generates more revenue from Microsoft Windows than Microsoft does, showcasing the competitive challenges faced by the company [3] Group 2: Cloud Computing Success - Microsoft Azure generated US$75 billion in revenue over the past year, outperforming Google Cloud's US$49 billion, marking a significant victory for Microsoft in the cloud computing sector [4] - Nadella was instrumental in pushing Microsoft into cloud computing long before becoming CEO, demonstrating a successful pivot from Bing's failure to Azure's success [4] Group 3: Lessons from Failure - The article illustrates that many successful tech executives have experienced significant failures, which can serve as valuable learning experiences [5][6] - Amazon's Ian Freed, who oversaw the Fire Phone failure, later contributed to the success of Alexa, demonstrating how failures can lead to future innovations [6][8] - The concept of "failure labs" is introduced, where companies can experiment without the constraints of their core business, allowing for innovation and breakthroughs [17][21] Group 4: The Innovator's Dilemma - The article discusses the "Innovator's Dilemma," where established companies struggle to innovate due to their focus on protecting existing profitable operations [14] - Successful companies like Amazon and Google have managed to break free from this dilemma by creating autonomous research labs that foster innovation [15][17] Group 5: Investment Insights - For investors, the article suggests that high-profile failures may indicate potential opportunities rather than disasters, and emphasizes the importance of patience in the face of short-term losses [18][21] - Companies that openly acknowledge their failures and have dedicated resources for experimentation are more likely to succeed in the long run [21]

Core Insights - Google is testing ad placements within AI chatbot conversations to protect its $200 billion search ad business as user behavior shifts away from traditional search [1][2][4] - The company is facing the "innovator's dilemma," needing to defend its profitable legacy business while adapting to disruptive technologies like generative AI [5][7] Ad Placement Strategy - Google has begun embedding ads directly into conversations with AI chatbots from startups like iAsk and Liner, expanding its AdSense for Search network [3][10] - In the pilot program, contextual ads are inserted into real-time chats, with search ad revenue accounting for 56% of Google's total revenue [4][10] Market Position and Competition - As of April, Google held a 90% market share in search, but only 2.3% in AI chatbots compared to OpenAI's ChatGPT at 84.2% [4] - Google's move to commercialize chatbot interactions aims to maintain control over the discovery layer of the internet amid increasing competition from AI-native platforms [8][9] User Experience Considerations - There is a risk that ad placements could degrade user experience, prompting the need for selective ad categories or an ad-free option [2][11] - Experts suggest that ads should be introduced in categories where consumers expect them, such as shopping and travel, or consider an "ad-free toggle" for a fee [12][13] Regulatory Environment - Google's market dominance is under antitrust scrutiny, having lost two cases related to anticompetitive practices, which could increase regulatory pressure as it seeks to monetize AI chatbot interactions [8][9]