Alphabet and AI: Historical Resilience and Silent Leadership
When the advantage isn’t being new, but knowing how to endure and master change.
AI is the narrative of the moment. But while many focus on the newcomers, they forget that Alphabet is not a bystander, but one of the silent architects of this revolution. This article explores how it overcame previous disruptions and why it could do so again.
From the Desk to the Pocket (and the Cloud)
There was a time, back in 2010, when many wondered if Google could survive the mobile shift. The world was moving from desktop computers to smartphones, and it was not clear that its dominance in search and advertising would hold. But it not only survived: it redesigned Android, adapted its search engine, conquered mobile advertising, and turned YouTube into an omnipresent platform.
Then came another wave: social networks. Facebook, Instagram, TikTok. And what did Alphabet do? It consolidated its advertising ecosystem, strengthened Google Ads, incorporated machine learning into its ad auctions, and transformed YouTube into one of the most profitable spaces in digital media.
Every time a change seemed to threaten its business, Alphabet reorganized its board and kept playing.
AI: Not Its First Day
Don’t be fooled by the shine of the latest models. Alphabet didn’t start with AI in 2023. Nor in 2021. It has been deeply investing for over a decade.
Google Brain and DeepMind are pioneering AI labs at the forefront of innovation, with advances recognized across the industry.
TPUs —internally designed chips— offer optimized computing power for AI, with scalability and cost advantages.
AI already lives in its products: Gmail, Translate, Maps, YouTube, the search engine itself… all have been using AI models integrated daily for years.
When they launch Gemini or announce infrastructure upgrades, they are not starting. They are releasing pieces they have been preparing for years.
Why Does This Matter to Investors?
Because AI is not a one-off opportunity. It’s a marathon. And in that race, promising is not enough: you need scale, data, distribution, capital, and talent.
Alphabet has:
Billions of daily users.
Unique, proprietary data from searches, videos, emails, maps.
Financial resources to invest in R&D without compromising margins.
Custom-designed technological infrastructure.
Is there competition? Of course. Is disruption a risk? Always. But if you seek a position of structural strength, it’s hard to find another company as well placed as Alphabet to turn AI into a durable advantage, not just a passing trend.
In Summary
Alphabet is not an outsider trying to enter the castle. It’s the giant already inside. Its track record is not perfect, but it is revealing: it has survived major technological transformations without losing its essence. And in this new wave, which many see as a threat, Alphabet could be finding the next layer of its own defensive moat.
Excelent note. Thanks.