The thing that is fundamentally different about this product cycle is that the software itself can actually do the work and therefore the market opportunity for software today is no longer just IT spend. It's largely labor. It's not like all the jobs will go away.I actually think that's not going to happen at all. There are a lot of things where if I could hire somebody for a dollar to do this task, I would 100% do that. I've never been able to hire somebody for a dollar. Now I can hire software for a dolla ...

Uh McKenzie Seagalos joins us now. What does this what does this mean. I mean, is this now uh put put Google in a in a position now where they have um a a uh an opportunity now to to to beat uh Open AI in any stretch.>> It certainly seems to signal that. So this code red warning comes from a leaked memo cited by the journal and the information and in it Sam Alman tells staff to pause work on ads health and shopping agents and then shift focus back to their core chat GBT experience faster responses better pe ...

Uh McKenzie Seagalos joins us now. What does this what does this mean. I mean, is this now uh put put Google in a in a position now where they have um a a uh an opportunity now to to to beat uh Open AI in any stretch.>> It certainly seems to signal that. So this code red warning comes from a leaked memo cited by the journal and the information and in it Sam Alman tells staff to pause work on ads health and shopping agents and then shift focus back to their core chat GBT experience faster responses better pe ...

AI Model & Product Integration - Google's Gemini 3.0 is officially released and integrated across Google products, eventually reaching Google Ultra subscribers [1][2] - Google is positioning Gemini as an ambient, deeply integrated AI system, building on the successes of past versions [2] - New features like complex reasoning and dynamic multimodal capabilities will be integrated into AI mode, the default experience for most Google users [3] - The Gemini app has 650 million monthly active users, closing the gap with OpenAI's Chat GBT, which had 700 million weekly users in August [4] Market & Financial Considerations - The market is tracking runaway capex, the rising role of debt, and circular financing in the AI space [5] - The trillion-dollar AI boom has elements of irrationality, and no firm is immune if the bubble bursts [5] - The market is not rewarding model wins the way it did a year ago, pricing in the cost of keeping up [6] Model Evaluation & User Perception - LM arena ai is used to rank AI models on benchmarks like math, coding, and reasoning [7] - Most users may not care about benchmark-beating models but want answers and a good personality [8][9] - Google's new model aims to be less syncopantic, potentially influencing consumer reception [9]

SoftBank's Investment Strategy Shift - SoftBank sold its entire Nvidia stake for approximately $58 billion [1] - SoftBank is reallocating capital to invest heavily in OpenAI, focusing on the application layer of AI [1][2] - SoftBank raised funds by selling over $9 billion worth of T-Mobile stock and using a margin loan on its ARM stake [3] - SoftBank believes the next wave of value creation is in AI interfaces, platforms, and agents rather than infrastructure [4] OpenAI vs Anthropic - Anthropic is more focused on enterprise clients, with roughly 85% of its revenue from business customers [7] - OpenAI's revenue split is 70/30 consumer-heavy, driven by products like Chat GBT and Sora, which are deeply unprofitable [7] - OpenAI is projected to lose $74 billion in 2028 alone [8] - Bernstein analysts estimate OpenAI burned $12 billion in Q3 [9] - OpenAI anticipates revenue on the scale of hundreds of billions of dollars by 2030 [10]

Market Trends & Investment Opportunities - Tom Lee is bullish on the stock market and cryptocurrency, anticipating a strong November with the S&P potentially rising by 200-250 points [2][3][4] - Fundamentals are leading price in crypto, with Ethereum stable coin volumes and application revenues at all-time highs, suggesting a rally into year-end [6] - Quantitative Tightening (QT) is expected to end, leading to a return of Quantitative Easing (QE), which historically drives asset prices up [24] Impact of AI & Automation - Chat GPT's launch correlates with a decline in job openings, indicating a potential impact on the job market [8][9][10] - Companies are becoming more productive with AI, incentivizing them to do more with less, increasing profitability and value [11] - China is leading in robotic hardware manufacturing, producing more robots than Germany, South Korea, Japan, and the US combined, at a lower cost [12][13] Economic & Policy Considerations - The Federal Reserve may be forced to resume balance sheet expansion to maintain an ample level of reserves and ensure financial stability [23] - Nvidia is aiming to bring back American manufacturing to enhance national security and supply chain resilience [15][17][18]

Capital Expenditure (CAPEX) - Alphabet's capital expenditure guidance ranges between $91 billion and $93 billion, aligning with Microsoft and Amazon's spending levels in the cloud sector [1] - Alphabet has capital expenditure commitments of around $100 billion [2] Revenue Performance - Search and other revenue reached $56.57 billion, exceeding estimates of $55.1 billion [3] - YouTube revenue for Q3 beat estimates at $10.26 billion versus the expected $10.01 billion [4] - Cloud revenue grew 34% year-over-year to $15.16 billion [4] - Other bets revenue, including Waymo, missed estimates at $344 million versus $433.1 million [3] Key Metrics & Competition - Alphabet's Gemini app has 600 to 650 million monthly active users, compared to OpenAI's ChatGPT with 800 million [2] - Alphabet's backlog number, a future revenue indicator, is coming in at $155 billion [2]

Core Insights - The company's AI initiatives are showing significant positive results, particularly in its search segment, which is crucial for revenue generation [1] - The chatbot Gemini has reached 650 million monthly active users, indicating strong competition with ChatGPT, which has 800 million weekly users [2] - Cloud services are performing well, exceeding estimates due to new AI partnerships with Meta and OpenAI [2] Financial Performance - The company reported an adjusted earnings per share (EPS) of $310, surpassing the expected $233 [4] - Capital expenditures (Capex) are projected to reach $93 billion at the high end, reflecting the company's efforts to enhance infrastructure and remain competitive [3] - The backlog for future cloud revenue is still behind competitors like Microsoft, Amazon, and Oracle, but recent deals, such as with Anthropic, may positively impact future performance [3]

Core Insights - Google shares have risen following a quantum computing breakthrough and reports of a multi-billion dollar cloud deal with Anthropic, indicating a shift in investor sentiment towards innovation rather than just search dominance [1][3] - The recent volatility in Google shares reflects the impact of competitive AI developments, particularly OpenAI's new Atlas browser, which poses a threat to Google's advertising revenue [2][5] - Investors are increasingly focused on Google's ability to lead in AI across enterprise and consumer sectors, as well as in quantum computing, rather than solely on its search and ad business [3][4] Company Developments - Google Cloud secured a $10 billion deal with Meta and Wells Fargo, highlighting the positive momentum in AI infrastructure and its silicon strategy [4] - The emergence of AI-native tools like ChatGPT and Atlas is beginning to divert search queries away from Google, potentially impacting its traditional revenue model [5][6] - Despite raising cost per click to meet revenue goals, there is a pressing need for Google to adapt its monetization strategy to incorporate AI [6] Market Dynamics - The competitive landscape is shifting, with new entrants challenging Google's market position, although Chrome's desktop market share has reportedly increased since May [7]

There are still a lot of questions, but we also know a lot. So, let's dig into what we do know and the reaction. Mackenzie Sagalos in San Francisco with more back.Hey, Brian. So, OpenAI is becoming the kingmaker of the tech trade. Today, it's AMD, but we have seen this before.Nvidia, Broadcom, and Oracle have each added hundreds of billions in market cap within hours off the back of single deal announcements with OpenAI. Now, I just sat down with OpenAI Chief Operating Officer Brad Litecap, and I asked what ...