Google\u2019s Long-Term Returns Back Bigger AI Bets<\/p>\n
Speaking with\u00a0Jason Calacanis\u00a0on Saturday\u2019s episode of the All-In Podcast, Palihapitiya said Alphabet had generated an average return on invested capital of about 32% since going public. <\/p>\n
\u201cWhen you are a machine, and a group of people, and a business model that compounds money at 32% over a 20-year average, you give these guys the benefit of the doubt,\u201d Palihapitiya added.<\/p>\n
He said the company\u2019s leadership has consistently invested to build its competitive advantage, adding that continued AI spending would pay off over time.<\/p>\n
\u201cThese are not people that are flying fast and loose, they are methodically investing in their edge.\u201d<\/p>\n
AI Fragmentation Could Work in Google\u2019s Favor<\/p>\n
\u201cThe best thing that can happen to them is 500 different models proliferate, and they support all of them,\u201d Palihapitiya said, adding that Google would profit from its silicon business, cloud platform and applications such as Search and YouTube.<\/p>\n
When Calacanis remarked that \u201cfragmentation is good\u201d for Google, Palihapitiya replied, \u201cOh, it\u2019s great for them. It\u2019s a compounding machine.\u201d <\/p>\n
Wall Street Balks at Google\u2019s AI Spending<\/p>\n
Alphabet\u2019s shares fell more than 7% on Thursday after the company raised its 2026 capital expenditure, wiping about $294 billion <\/a>off its market value in its biggest one-day loss on record.<\/p>\n