The Information's TITV
00:43:58 · Akash Pasricha, Gopal Srinivasan
[00:43:58] S0: Right. And, you know, I I I wanna ask you about the traction that we're seeing around TPUs, because this is a topic we've been talking about on the show today. I mean, now OpenAI is using TPUs, Oracle using TPUs. I expect it's going to be front and center tonight for Google's quarterly results as well. Good morning. When you are talking to customers about Gemini, how much are they thinking about whether or not they can use an end to end offering from Google with the cloud, with TPUs, also the model. Is that an important consideration for them? Is it sort of a second consideration? Where does that come up? [00:44:45] S4: The full stack approach that Google has is certainly a big consideration. The fact that Google brings its own first party products at every layer of the stack from the silicon at the bottom to the application at the top of the layer and everything in between from the platforms to the models is a major differentiator. And many of my clients absolutely consider that as an advantage for many reasons. One, it manifests itself in the seamlessness of being able to build and deploy agents and AI applications. Second, because it's optimized end to end, it's highly performant. And third, it also translates into better economics because of that end to end integration and the fact that they designed their silicon themselves means the overall cost to any end customer tends to be more optimal than, say, considering alternatives.
00:44:45 · Gopal Srinivasan, Akash Pasricha, Umesh Padval
[00:44:45] S4: The full stack approach that Google has is certainly a big consideration. The fact that Google brings its own first party products at every layer of the stack from the silicon at the bottom to the application at the top of the layer and everything in between from the platforms to the models is a major differentiator. And many of my clients absolutely consider that as an advantage for many reasons. One, it manifests itself in the seamlessness of being able to build and deploy agents and AI applications. Second, because it's optimized end to end, it's highly performant. And third, it also translates into better economics because of that end to end integration and the fact that they designed their silicon themselves means the overall cost to any end customer tends to be more optimal than, say, considering alternatives. [00:45:44] S0: Now, one of the interesting transitions that we've seen from Google Cloud is that they're now offering access to other companies' models as well. Right? [00:45:54] S2: Mhmm. Mhmm.
00:45:54 · Umesh Padval, Gopal Srinivasan, Akash Pasricha
[00:45:54] S2: Mhmm. Mhmm. [00:45:55] S4: That is true. So Google has this layer in the platform called the model garden, which offers a variety of models from not just the first party Gemini models or their own open weight Gemma models, but models from other labs as well. And, they've offered, for instance, Anthropic for a long time. And as, many of you and your viewers may have seen recently announced that OpenAI models will also become available. And, I think if you've been following what they've been saying forever is that Google Cloud as a hyperscale platform for building agentic and AI applications will take the approach of offering optionality to customers. Their their differentiation is centered on we wanna offer the widest choice to our customers and create the most seamless place where you have the choice to use different models, different frameworks. They support third party frameworks, first party frameworks. They came up with the a two a protocol, enables agent to agent interoperability. So that has always been the philosophy. And so the news itself perhaps doesn't come as much of a surprise. And at this point, you can get models from all the leading labs out there Right. Available on the Google Cloud Agent Platform. [00:47:25] S0: Although, I mean, the the question that does come to mind for me is, does that not then cannibalize use of Google's own models that it is developing and trying to convince customers to use?
00:47:25 · Akash Pasricha, Gopal Srinivasan
[00:47:25] S0: Although, I mean, the the question that does come to mind for me is, does that not then cannibalize use of Google's own models that it is developing and trying to convince customers to use? [00:47:39] S4: Again, the use of Google's own models span a much wider spectrum than just the enterprise use of these models. So if you look at how Google is structured and operates, the models come out of Google DeepMind, and those models are then adopted by various Google product teams from the consumer Gemini app to Google's search and ads business to YouTube, and, of course, the enterprise business in, cloud. And therefore, the surface area for distribution for Google is far wider than any of the other providers there. So at a... If you consider a single instance, for instance, one of my clients might say, for this use case, because I have the option of another model, I'm gonna choose that over a Gemini model. Yes, in that instance, it might mean cannibalization. But at the end of the day, you're still running inference on the Google platform, and you're paying Google to run inference even if it's a third party model. And when you offer our optionality, customers bring more workloads to the platform, and they tend to use it more. So in the aggregate, it drives higher business for Google than cannibalization at a unit level. So I think that's how they think of it, and we've seen it firsthand that when you offer choice, customers bring more workloads. And in the in the sum, that tends to lead a higher amount of consumption.
00:49:09 · Akash Pasricha
[00:49:09] S0: Right. Well, Gopal, I want to thank you for coming on. That is Gopal Srinivasan from Deloitte here on TITV. That does it for today's show. A reminder, are on this stream Monday through Friday at 10AM Pacific, 1PM Eastern. If you can't make it then, episodes are available on theinformation.com, on our YouTube channel, or wherever you get your podcasts. Make sure to follow us on social media, on X, on Instagram, on TikTok, and on LinkedIn. I am already excited for our next show tomorrow, our WTF special. Have a great rest of your Wednesday. Bye bye for now.