Baker explains Google pays Broadcom 50-55% gross margins for back-end TPU design and Taiwan Semi management.
“I think part of that is, so Google, let's say the TPU, so there's front end and back end of semiconductor design, and then there's dealing with Taiwan Semi.”
Baker reports Larry Page has said internally he is willing to go bankrupt rather than lose the AI race.
“Larry Page has evidently said internally at Google many times, I am willing to go bankrupt rather than lose this race.”
Baker says Google was first cloud provider to stop competing with independent infrastructure software providers.
“But they try and force the open source infrastructure build themselves. And I think Google was the first one to realize, like, Hey, this is kind of silly.”
Baker argues Google was first cloud provider to embrace rather than compete with third-party infrastructure software.
“B, there's a lot of money to be made just in providing these primitives. Let's stop trying to compete with these independent infrastructure software providers right on top of the cloud.”