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Google Took a Bite Out of Apple: The Gemini Masterplan · In the Loop AI

0:00
Ejaaz: Get this, in the span of just one week, Google got Apple to admit that their
0:04
Ejaaz: tech is superior and pay them $1 billion for the privilege of putting Gemini
0:09
Ejaaz: in every single Apple device. That's 2 billion devices.
0:13
Ejaaz: Not only that, Google launched Gemini for Gmail, which now means that over 2
0:17
Ejaaz: billion inboxes worth of data is ripe and ready for them to train Gemini on
0:22
Ejaaz: into the most personal, best AI assistant you could have ever hoped for.
0:26
Ejaaz: But there's a third thing as well, Google also launched a product that might
0:30
Ejaaz: make them the backbone of the e-commerce industry.
0:35
Ejaaz: If your name is Jeff Bezos or Amazon, you're sweating buckets right now.
0:39
Ejaaz: There was also one little thing.
0:41
Ejaaz: Oh yeah, they became the second most valuable company in the world,
0:44
Ejaaz: surpassing a $4 trillion market cap, beating Apple for the first time since
0:49
Ejaaz: 2019 and coming in second under NVIDIA.
0:53
Ejaaz: Now, most people saw three separate headlines from Google this week.
0:56
Ejaaz: But on this episode, we're going to show you the master plan that connects all
1:00
Ejaaz: of them and why Google might have just pulled off the most important week in AI in 2026.
1:05
Josh: Man, what a week. I mean, they didn't even ship features. They just captured choke points.
1:09
Josh: This was like a huge power consolidation week for Google. And it very much feels
1:14
Josh: like they're assembling this full stack mode.
1:16
Josh: And I mean, I guess as a visual, you can imagine your iPhone's brain is Gemini.
1:20
Josh: Your inbox is Gemini. Your shopping checkout is Gemini.
1:23
Josh: It's not an assistant. They're creating this operating system for your life.
1:27
Josh: And this started early on where I think the common joke and how I use my phone
1:31
Josh: personally is I have an Apple iPhone for hardware, but I use all of the Google apps on my phone.
1:36
Josh: And this is taking it to the next level where Apple has failed to generate
1:40
Josh: artificial intelligence, Apple intelligence on device. And now they've had to
1:43
Josh: defer to Google to do this for them. Is it a bad thing?
1:46
Josh: No. In fact, I think everybody wins. But maybe we could start there.
1:49
Josh: And we'll get into what exactly is going on with this new Apple and Google AI deal.
1:54
Ejaaz: Yeah, I mean, before we do, I mean, it's worth considering that Google three
1:59
Ejaaz: years ago was the laughingstock of the entire AI industry. They had a terrible model.
2:04
Ejaaz: Open AI was running laps around them. And then in the last year,
2:06
Ejaaz: their market cap has gone up 65%. And I think you were telling me before we started recording.
2:11
Josh: This is crazy. Wait, so from April 2025 until today, Google's market cap went
2:16
Josh: from 1.8 billion, or sorry, 1.8 trillion to 4.8 trillion.
2:22
Josh: In the span of like, what is that? Nine months, 10 months? That's like unbelievable
2:26
Josh: levels of growth for the second most valuable company on earth.
2:30
Ejaaz: I think it's because they have this very multi-pronged strategy, right?
2:35
Ejaaz: Like the typical AI company is like, hey, we have this cool model.
2:38
Ejaaz: Isn't it awesome? Here's a chatbot for you.
2:40
Ejaaz: Google has that, and they have the infrastructure via TPUs and cloud,
2:44
Ejaaz: and they have the distribution via Gmail, Google Maps, and pretty much any kind
2:48
Ejaaz: of internet app you use today.
2:51
Ejaaz: They're just kind of like this all-in-one unicorn behemoth, and it's showing, right?
2:56
Ejaaz: So let's get into the Apple deal. Josh, run me through the highlights. What's going on here?
3:01
Josh: Yeah, so TLDR, Apple is changing its brain over from Siri to Gemini,
3:06
Josh: except it is keeping it under the Siri branding.
3:09
Josh: So what you're going to get is all the promises of Apple intelligence,
3:13
Josh: hopefully, except instead of powered by Apple intelligence, it's actually under
3:16
Josh: the hood powered by Google.
3:18
Josh: Now, this might come as a confusing headline to some people because previously
3:21
Josh: it was announced that Apple was working with OpenAI.
3:25
Josh: In fact, if you asked Siri a difficult question, it would offload that question
3:29
Josh: to chat GPT. That is no longer the case.
3:33
Josh: Apple decided, wait a second, we actually don't really think OpenAI is the best
3:36
Josh: fit. We think Gemini is the best fit. And here we see the reasoning why.
3:40
Josh: They said they've entered into a multi-year collaboration under which the next
3:43
Josh: generation of Apple Foundation models would based on Google's Gemini model.
3:47
Josh: After careful evaluation, Apple determined that Google's technology provides
3:50
Josh: the most capable foundation for Apple Foundation models. So this is a big deal.
3:56
Josh: One, because they're now paying Google a billion dollars a year
3:58
Josh: for this right but two because now they actually have a smart
4:01
Josh: intelligence that they can integrate into the os in
4:04
Josh: a way that everyone had always hoped for right like they
4:07
Josh: they pretty much failed version one of apple intelligence it was just a complete
4:11
Josh: and total failure but now they have an opportunity to do it again and they're
4:14
Josh: doing so with the model that i mean we believe to be most capable from a company
4:18
Josh: that we really appreciate and they have a relationship that has been standing
4:22
Josh: for a really long time if you remember from was it's got to be close to 20 years
4:26
Josh: ago, like over a decade ago,
4:27
Josh: Apple started paying or Google started paying Apple for the exclusive rights
4:30
Josh: to have Google as the search engine on Safari.
4:34
Josh: Well, now Apple's paying it forward. And instead of $20 billion,
4:37
Josh: they're paying $1 billion, so it's 5%. But this is a really harmonious deal.
4:40
Josh: I think everybody wins in this situation. And as an Apple user, I'm excited.
4:43
Josh: I've always used Google Apps, and now I could use Google AI in addition to those apps.
4:48
Ejaaz: I think Google was the only option that Apple could really consider when it
4:53
Ejaaz: came to putting an AI model in their devices.
4:56
Ejaaz: Why? Google is the only company that can scale to the lengths that Apple has.
5:01
Ejaaz: OpenAI is still a small startup. Anthropic, still a small startup.
5:05
Ejaaz: Google has the entire full stack, right? They have cloud, they have TPUs,
5:08
Ejaaz: they have all the distribution, and they have all the money and resources to
5:12
Ejaaz: be able to kind of scale this out to the size that Apple wants it to be.
5:16
Ejaaz: The other important thing is the quote you mentioned, which is,
5:20
Ejaaz: they believe Google has the most capable foundation.
5:23
Ejaaz: I think that's a signal and a hint that the way that Google's model is created,
5:28
Ejaaz: The fact that you can ingest video.
5:31
Ejaaz: Audio, as well as text makes it this kind of like all-knowing model,
5:36
Ejaaz: which is way more useful for Apple, who builds products and apps and software in a very similar way.
5:42
Ejaaz: The other thing that I think is important to point out here is there's this
5:45
Ejaaz: kind of like platform play that is interchangeable between Apple and Google.
5:50
Ejaaz: As you mentioned, they've had a very long relationship.
5:53
Ejaaz: And in fact, Google has been the one that typically pays Apple for the privilege
5:57
Ejaaz: of making Google search the default search engine in Safari, right?
6:02
Ejaaz: And they pay them, I think it's $20 billion a year, and that's existed for so long now, right?
6:08
Ejaaz: But now we see the first instance of it going the other way around,
6:12
Ejaaz: where Apple is paying Google for the privilege of having their model embedded in their phone.
6:17
Ejaaz: And they're going to use it to train the personalized version of Siri and their
6:20
Ejaaz: own Apple foundational models.
6:22
Ejaaz: And I can't help but think that there's a non-zero a chance in the future that
6:26
Ejaaz: this trend flips and Apple ends up paying Google more.
6:31
Josh: Do you think that world would ever happen? So then how did they get to 5% of
6:36
Josh: that total number if the expectation is that it can actually grow to $20 billion?
6:41
Josh: What does that look like if they're paying Google $20 billion? What is that for?
6:44
Ejaaz: Okay, so my take on this is if, or when rather, they do end up paying Google
6:51
Ejaaz: more, Apple will be making way more on the top end.
6:55
Ejaaz: The reason being is Apple is a product consumer-oriented company,
7:00
Ejaaz: And they are amazing at building exactly that, the consumer user experience.
7:05
Ejaaz: They do this through devices, integrated software stacks.
7:08
Ejaaz: It is just the best available ecosystem that you can access.
7:11
Ejaaz: You and I have used Apple for God knows how long, right?
7:14
Ejaaz: I think they're going to continue to do this. That's where their bread and butter
7:17
Ejaaz: is. But they need the brain to be able to pull this off.
7:21
Ejaaz: To kind of simplify this, I think if Google builds the best AI model,
7:25
Ejaaz: Apple will build the best apps for everyone in the world to use.
7:29
Ejaaz: And that typically ends up making the most money if you look at every single
7:33
Ejaaz: tech cycle to date. Do you have a different take?
7:36
Josh: I feel like they would swap out before getting to the $20 billion mark.
7:39
Josh: Like I'm just struggling to understand how they would be paying such a huge
7:44
Josh: premium relative to where they are today. Like where is that difference made up?
7:47
Ejaaz: Well, the switching cost becomes way too high, right?
7:51
Ejaaz: Imagine if every personal version of Apple's AI model that you use or that any
7:58
Ejaaz: of their iPhone users use is trained on Gemini,
8:01
Ejaaz: I'm guessing some portion of that data is trained on Gemini or rather Google
8:07
Ejaaz: servers to some extent, right?
8:09
Ejaaz: Apple can't hold all of that data unless you think they're going to expand their
8:12
Ejaaz: private cloud to own that part.
8:15
Ejaaz: I don't see Google giving that part up, right? That's what is going to make
8:19
Ejaaz: their models more competent in the future.
8:21
Josh: Yeah, it seems like the strategy is going to be this twofold thing where they
8:25
Josh: have Google in the cloud, and that's their foundation model that handles the difficult tasks.
8:29
Josh: But they also have these really precise and very effective hyper-local models
8:33
Josh: that run very efficiently and are very small to kind of handle the local on-machine compute.
8:38
Josh: And we've talked about this in a few episodes before, but it feels like this
8:41
Josh: is still an underrated strategy for Apple where they've all floated this AI
8:46
Josh: responsibility, I guess, to Google in a big way.
8:49
Josh: But in the little way, there's still a huge opportunity on the local devices
8:52
Josh: for Apple to run their own completely, totally private models that run on this secure enclave.
8:57
Josh: And again, if you're a developer who's building for these platforms, that's free inference.
9:02
Josh: So maybe Google will give you really great rates and it'll give you really great
9:06
Josh: results. But there's still this huge opportunity to unlock for anyone who wants
9:11
Josh: to run these local AI models on Apple devices.
9:14
Josh: And I'm hopeful that the developer community is going to start to see this because
9:17
Josh: the cost of inference on these devices is zero.
9:20
Josh: And I mean, if Google does continue to ramp up the price, I assume it will be
9:24
Josh: kind of in correspondence to the increased compute of these chips that can then
9:28
Josh: run more and more capable models even on a local device.
9:31
Josh: So maybe there's a world in which Google doesn't actually need to provide a
9:35
Josh: ton of the intelligence, just the really hard stuff.
9:37
Josh: And eventually Apple's local models will catch up. I don't know,
9:39
Josh: but it's an exciting thing to say a new paradigm shift, that they're actually
9:42
Josh: taking it seriously now because Apple intelligence, as serious as it felt, was certainly not that.
9:48
Ejaaz: Listen, there's a perspective that would say Apple is actually the genius in
9:52
Ejaaz: the AI race here because they haven't spent tens of billions of dollars to try
9:57
Ejaaz: and highly likely fail at building an AI model.
10:00
Ejaaz: We've seen that with Meta so far, right?
10:03
Ejaaz: So, you know, they've just waited for the cream of the crop to rise to the top,
10:07
Ejaaz: and then they've picked the best model, and now they're going to go do what they do best.
10:10
Josh: Oh, we'll take that for a billion, thank you.
10:11
Ejaaz: Yeah, I'll take it for, exactly, I'll take it for a billion dollars.
10:13
Ejaaz: Also, you're still paying me $19 billion net to have the default search thing, right?
10:18
Ejaaz: So there is a world where Apple licenses the model, builds the best AI agent,
10:24
Ejaaz: which supposedly is going to be the main interface that will replace the search
10:27
Ejaaz: engine and the internet browser itself, which would mean that they could end up winning overall.
10:32
Ejaaz: So I guess I'm bullish Apple, Josh, which is funny because on previous episodes,
10:37
Ejaaz: I just haven't been that.
10:38
Ejaaz: So yeah, I'm feeling optimistic about Apple's deal here.
10:42
Josh: Bullish Apple, bullish Google. I mean, hey, Apple doesn't have to worry about
10:45
Josh: this data center craziness. They're in a pretty good spot.
10:47
Ejaaz: One man isn't happy, though. One man isn't happy, Josh.
10:51
Ejaaz: Who's that? That is Elon Musk. Oh? He commented on this whole news,
10:57
Ejaaz: and he said, this seems like an unreasonable concentration of power for Google,
11:01
Ejaaz: given that they also have Android and Cruf.
11:04
Josh: All right, well, Elon, unless you're going to go make an iPhone,
11:07
Josh: I don't know what to tell you, dude. I think the consumer is happy about this one.
11:10
Ejaaz: Look at this tweet. from quinn yeah nobody wants to license grok little bro it's god just.
11:17
Josh: Wait until 4.2 comes until grok 5 anyways that's the apple and google news we
11:22
Josh: have more google news as it relates to gmail if you are not using gmail i don't
11:26
Josh: even know what you're using um but gmail has some good updates this week from
11:29
Josh: gemini so you just can you please share the cool new gemini features that we'll
11:33
Josh: be getting in our inboxes starting today i think
11:37
Ejaaz: Yeah. So the highlight is Gemini 3 Pro is now available in your inbox in Gmail.
11:44
Ejaaz: It can do a bunch of cool things. It can get rid of all the garbage emails that
11:49
Ejaaz: you're never going to respond to, all those unreads, just get rid of them.
11:52
Ejaaz: And it can prioritize the ones that you need to respond to.
11:55
Ejaaz: But also it can train on all of your emails and understand your voice and what
12:00
Ejaaz: you want to say in your responses. So it can start writing up responses for
12:04
Ejaaz: you and automating a bunch of work that you just don't want to do.
12:07
Ejaaz: But the thing that I found the most interesting, Josh, has got nothing to do
12:10
Ejaaz: with Gmail, ironically.
12:12
Ejaaz: It's to do with Google Workspace, which it also has access to.
12:16
Ejaaz: So it's not just your inbox.
12:17
Ejaaz: It has access to your Google Drive, your Google Documents, your Google Sheets,
12:23
Ejaaz: which is just a plethora of data that no other company has access to.
12:29
Ejaaz: Which brings me to one of the key takeaways here, and the story that I think
12:32
Ejaaz: a lot of people missed with this headline is...
12:35
Ejaaz: Google just unlocked the mother of all data modes. Think about it.
12:39
Ejaaz: Claude has access to your conversations.
12:42
Ejaaz: OpenAI has access to your conversations. Google has access to 2 billion inboxes.
12:48
Ejaaz: It has access to all your Google Maps data.
12:51
Ejaaz: It has access to your search engine history. It has access to Android.
12:55
Ejaaz: It has access to all of this data, which they can feed into their model and
12:59
Ejaaz: train a better model, which ends up becoming more addictive for a person to
13:02
Ejaaz: use, a better experience, which then feeds into this kind of like whole data mode.
13:07
Ejaaz: And to your point, they own the monopoly on email. I think it's something like
13:11
Ejaaz: 30% of the email market share.
13:13
Ejaaz: And Josh, get this, 90% of US startups also use Google Drive and Gmail,
13:20
Ejaaz: which means that they get access to all this data as well.
13:22
Ejaaz: Now, I think it's important to state that Google has said that they're not going
13:25
Ejaaz: to use the data to train their models, but it doesn't stop them from using trend
13:30
Ejaaz: analysis and pattern matching to train their models, which is where the goldmine is anyway.
13:35
Josh: Yeah, so as you were saying this, I was looking at how many people on earth
13:38
Josh: use the internet, and the number's about 6 billion.
13:40
Josh: And Google says about 3 billion of those, 50%, rely on Gmail,
13:45
Josh: which is just this unbelievably large amount.
13:47
Josh: So like you described, it's great for data, it's great for Google in terms of user modes and lock-in.
13:52
Josh: But I think there's an argument to be made that it's also great for the user too.
13:56
Josh: I mean, in a way, email is the closest thing we have to a life database.
14:00
Josh: Like normally normal people they kind of maintain everything
14:03
Josh: through there it's like this is where your receipts live where you buy something
14:07
Josh: this is where your meeting invites live this is where the contracts that you
14:10
Josh: sign live this is where the intros to people who you meet live it's kind of
14:14
Josh: the place where all of the receipts all the cataloging of your life lives and
14:18
Josh: applying Gemini on top of that becomes this really powerful thing where
14:22
Josh: It builds this life operating system on receipts that you've collected since
14:26
Josh: you've started this Gmail account.
14:28
Josh: And one of the really cool things that I've been playing around with recently
14:31
Josh: is clawed code this week.
14:32
Josh: And I use this tool named Obsidian where I've just like written notes into it
14:35
Josh: for years and years and years.
14:36
Josh: And for the first time ever, it's able to take that backlog of data and actually
14:41
Josh: parse through and make sense of it and connect things in ways that weren't intuitive.
14:45
Josh: And this feels like the lazy man's version of that, where even if you haven't
14:48
Josh: been writing into this like entry database for years,
14:51
Josh: you've been collecting these kind of things along the
14:53
Josh: way you've collecting receipts you've been collecting meetings and you've collecting whatever it
14:56
Josh: is and now Gemini is able to parse through that make sense of
14:59
Josh: it and build a more global model that understands you
15:02
Josh: well so in that sense alone it's awesome the other sense is
15:05
Josh: actually for writing emails are we getting to a place now
15:08
Josh: where AIs are just going to be emailing AIs like you guys
15:11
Josh: you email me and you're just like oh just tell Josh this that and the third
15:15
Josh: and then I have my AI reply with whatever it thinks that I'm going to know and
15:18
Josh: then suddenly your gmail just becomes automated so this can this can go a various
15:23
Josh: amount of directions but i think directionally it's great this is like really
15:27
Josh: exciting for anybody who's a user of gmail your experience just got way better
15:31
Ejaaz: Yeah it's funny technology which is supposed to connect humanity as a whole
15:34
Ejaaz: is ending up becoming the disconnecting engine of the and you.
15:39
Josh: Know what it's just because we're lazy man it's great at it and like why would
15:42
Josh: i go write a long email when it could do it better than me faster than me more
15:45
Josh: effectively than me more convincing than me it knows everything about me it's
15:49
Josh: like this it's this unbelievable thing it's
15:50
Ejaaz: Weird it's it's so true you know you mentioned you're using
15:53
Ejaaz: cloud code um i i've been using called uh
15:56
Ejaaz: co-work which is basically cloud code for all the non-technical stuff over the
16:01
Ejaaz: last like 24 hours and dude i currently have called co-work doing a bunch of
16:06
Ejaaz: tasks that i have like put off for an entire year and it's great we're going
16:11
Ejaaz: to be putting out an episode of this later this week yes oh.
16:13
Josh: It's my favorite thing i'm
16:14
Ejaaz: So stoked for that it is so cool um but
16:17
Ejaaz: anyway to kind of like wind up the gmail point
16:20
Ejaaz: um i think it's a really good example of ai
16:24
Ejaaz: coming to the people and meeting the people where they're
16:26
Ejaaz: at right now ai has existed as this chatbot interface you need to kind of download
16:30
Ejaaz: it pay a subscription and now it's kind of this useful tool um that everyday
16:35
Ejaaz: people can use it's not just you or i josh it is my mom it is my sister it is
16:40
Ejaaz: pretty much anyone that has a gmail account you know there's three billion users
16:44
Ejaaz: which i think is cool the second thing is,
16:46
Ejaaz: This just kind of locks in people to using Gemini AI.
16:51
Ejaaz: We had a conversation before we recorded this where you kind of raised the point,
16:55
Ejaaz: why wouldn't I just connect Claude code to this and connect to it via API?
17:01
Ejaaz: And the simple answer to that is most people aren't going to go through setting up an API account,
17:07
Ejaaz: which is a separate thing to Claude's subscription, by the way,
17:10
Ejaaz: and then connecting it, adding the API key, if they just have Gemini baked into
17:15
Ejaaz: it, which is just a full stack experience. Three billion users. Google wins again.
17:19
Ejaaz: Yeah, the switching costs go up. Why would I want to just install this other
17:22
Ejaaz: thing? It's already here and it's good enough.
17:24
Ejaaz: It may not be better than this particular benchmark, but I don't care.
17:27
Ejaaz: It's already here. It's trained on my memory. I'm locked in.
17:30
Ejaaz: I'm not using anything else.
17:31
Josh: Yeah, and that's why distribution is so important. You just meet the people
17:33
Josh: where they are and you have three billion people waiting to receive whatever
17:36
Josh: you give to them. And today, it's AI.
17:39
Josh: Now, Ejaz, for our third and final topic, I want you to explain this Because
17:43
Josh: if I remember just a few weeks ago, I read a newsletter published by you that
17:47
Josh: said Amazon is going to be one of the biggest winners of 2026.
17:50
Josh: And as I'm reading the news this week from Google, and particularly Sunar Pashai
17:54
Josh: with this post, it's telling me, well, actually, Google is going to work to
17:58
Josh: build a competitor to Amazon.
18:00
Josh: And maybe I'm reading this right, maybe I'm not. But they're teaming up with
18:03
Josh: companies like Walmart, Shopify, Etsy, Wayfair, Target, to create this universal
18:08
Josh: commerce protocol. So maybe you could explain the bull and bear case for this
18:13
Josh: new protocol, what it is, how it works.
18:15
Josh: What's going on here? Is this a real problem for Amazon?
18:17
Ejaaz: So let's get into this. Google released a product or protocol called the Universal Commerce Protocol.
18:23
Ejaaz: And it basically will allow you or anyone that uses Gemini to make purchases
18:29
Ejaaz: and shop via the Gemini chat interface.
18:32
Ejaaz: And the way that they do this is they hook up APIs from various different shopping
18:37
Ejaaz: partners. like you mentioned, Shopify, Walmart, etc., connects to your wallet.
18:42
Ejaaz: And now there's this seamless experience where Gemini...
18:46
Ejaaz: Via the context that you've provided it to previous conversations. Also,
18:50
Ejaaz: by evaluating your shopping history, we'll suggest products as you're having
18:54
Ejaaz: conversations with it or useful tools that might help you with a task that you're
18:57
Ejaaz: trying to kind of resolve by talking to Gemini and say, hey,
19:01
Ejaaz: do you want me to buy this for you? I'll get it delivered to you and it'll arrive tomorrow.
19:05
Ejaaz: Now, we've seen various instances of this appear. I think Codex,
19:10
Ejaaz: which is OpenAI's first version of an agent, offered something like this,
19:14
Ejaaz: but it just never manifested.
19:16
Ejaaz: This is the real deal. It's still in a beta testing period, which is why I can't
19:20
Ejaaz: really comment on it thoroughly, but it's supposedly meant to do the thing that
19:25
Ejaaz: we've been promised for over a year now.
19:28
Ejaaz: So then the question becomes, if everyone is doing their shopping via Gemini
19:33
Ejaaz: or via an AI chatbot, what happens to Amazon?
19:37
Ejaaz: And that's a real problem, Josh, because what this ends up putting Google in
19:42
Ejaaz: a position is, is the intense layer. What do I mean by that?
19:46
Ejaaz: What I mean is it'll know exactly what you want to buy, and it'll purchase it for you.
19:51
Ejaaz: And it'll know why you want to buy the thing, which is really important.
19:55
Ejaaz: Amazon, which currently has this ability because you go on Amazon,
19:59
Ejaaz: you scroll, so it kind of looks at you use this habit,
20:02
Ejaaz: we'll get that removed completely. So they'll just end up becoming the warehouse
20:05
Ejaaz: and delivery fulfillment center.
20:07
Ejaaz: Now, that's not exactly a bad thing. And I would actually argue,
20:10
Ejaaz: Josh, that that has been Amazon's bread and butter, right? What's the biggest moneymaker, Amazon?
20:16
Ejaaz: It's not their shopping or e-commerce platform. It's AWS.
20:19
Ejaaz: They are an infrastructure fulfillment center company.
20:23
Ejaaz: To your point, they move atoms more than any other company in the world.
20:27
Ejaaz: Big time. And I think they'll just continue doing this.
20:29
Ejaaz: And Google will just be the layer on top that routes arguably more purchases
20:33
Ejaaz: to Amazon if they fulfill their vision of being the biggest distributor.
20:38
Josh: Yeah, it's a good take. It seems right. It seems like in a way Amazon is kind
20:42
Josh: of like the mall and then Google wants to be the credit card network plus the front door to that mall.
20:47
Josh: And what we discussed in the last section where Google has 3 billion people,
20:50
Josh: they have the people where they are.
20:53
Josh: In the case of Amazon, you kind of have to seek that out. You go to Amazon to
20:56
Josh: buy something, you go there with intention, but the intention is always fairly intentional.
21:01
Josh: With Google, you're just there, you're searching for carry-on luggage,
21:05
Josh: you're searching for trips and then it could integrate these recommendations
21:08
Josh: like we're seeing on screen with this example into the search results.
21:11
Josh: So that point about intention is really important because, I mean, is this bad for Amazon?
21:16
Josh: No, because Amazon still owns the fulfillment, Prime, the last mile dominance
21:20
Josh: that they have but yes, in the sense that Google does own that upstream intent
21:24
Josh: and the moment you decide to buy something,
21:26
Josh: Google can be there to capture that. So it's interesting.
21:30
Josh: We'll see how this plays out. I mean, OpenAI earlier this year did something
21:34
Josh: similar where they partnered with a lot of these companies and they integrated
21:37
Josh: it into the search results.
21:38
Josh: But I haven't actually experienced that. I'm not sure if it's working.
21:42
Josh: I haven't bought anything through ChatGPT.
21:44
Josh: And yet they rolled this out months ago. So I think the actual execution on
21:48
Josh: this really matters because on paper, it seems great.
21:50
Josh: But is this actually going to convert sales using these new customers?
21:54
Josh: That remains to be determined like have you have you seen any have you booked
21:58
Josh: anything through chat gpt post integration no
22:01
Ejaaz: No i thought it was actually a terrible product um and
22:04
Ejaaz: i remember being super excited by it but it just never took
22:07
Ejaaz: off and maybe we'll see the same story here uh the real litmus
22:10
Ejaaz: test will be if my girlfriend starts using it um i'll
22:13
Ejaaz: end up with a problem at that point right um two two
22:16
Ejaaz: other important points here is google was
22:19
Ejaaz: also kind of like the doormat to internet shopping
22:22
Ejaaz: right like the search links josh 10 blue
22:26
Ejaaz: links but then you had to kind of like figure it out
22:29
Ejaaz: from there you had to browse and find the right product and now
22:32
Ejaaz: they're saying hey we got the product for you do you want me to buy it and send
22:36
Ejaaz: it to you right so there's this like interesting evolution where um kind of
22:40
Ejaaz: unexpectedly the monopolist is still trying to monopolize on the new frontier
22:45
Ejaaz: which is like pretty cool to to see the other thing i just thought of, Josh, is,
22:50
Ejaaz: we mentioned a stat earlier, which is 90% of US startups use Google Drive,
22:56
Ejaaz: Gmail, the entire suite.
22:58
Ejaaz: So that technically means they
22:59
Ejaaz: could sell their product through Gemini in this new commerce protocol.
23:04
Ejaaz: Which would be insane, right? And would cement Google's distribution at this
23:08
Ejaaz: shopping layer. It would just be insane overnight.
23:11
Josh: Yeah, so that's it. I mean, big week. In conclusion, I guess this is how you
23:15
Josh: become unstoppable, right? You don't just build the brain. You buy the distribution.
23:18
Josh: You embed it into the memory layer. You standardize the checkout rails.
23:21
Josh: You kind of like capture the whole thing.
23:23
Josh: And it feels like if 2024 and 5 were the model wars, 2026 is becoming the,
23:29
Josh: I guess, maybe the default war. Like, where do you go by default to engage with AI?
23:34
Josh: And if that answer is Google products, it stands to be a very good year for them.
23:39
Josh: And we're seeing that in the chat GPT and open AI, a degration of weekly active users.
23:46
Josh: I mean, the relative market share of Gemini, of Claude is having an unbelievable month.
23:51
Josh: They're starting to kind of chisel away.
23:54
Ejaaz: I think Gemini hit 21%, right, of AI traffic.
23:59
Josh: Something like that. It's happening quick. It's happening quick.
24:01
Josh: And one thing that I haven't heard in a while is an update to that 800 million
24:05
Josh: weekly active user number from OpenAI.
24:07
Josh: And I really am wondering how they're planning to deal with this because now Claude is building.
24:13
Josh: Did you see Claude built the health app this week too? They launched the health
24:16
Josh: app. We're going to have to talk about this in the roundup. There's so much
24:18
Josh: stuff that happened this week. It's unbelievable.
24:20
Josh: But there's been big changes here and lots of paradigm shifts happening.
24:24
Josh: And in terms of Google, this is a huge win across the board.
24:28
Josh: It feels like it's a huge win for everyone, for Google users,
24:30
Josh: for Google customers, for Google shareholders, and for Apple users as well.
24:34
Josh: So big wins across the board, maybe not for Amazon, maybe not for anyone competing
24:38
Josh: with these companies, but nonetheless, a really...
24:42
Josh: Exciting week for Google and giving probably everyone listening to this at least
24:47
Josh: something new to try out and play with.
24:49
Ejaaz: Yeah, I agree. I bought more Google stock this morning before recording this episode.
24:54
Ejaaz: But I know a lot of you listening to this kind of hate Google.
24:58
Ejaaz: I might be wrong here. But if you do, let us know why. Let us know your thoughts on this.
25:05
Ejaaz: I'm down. We do it every day anyway. A lot of you like to argue and we're there for it.
25:10
Ejaaz: But if you have any kind of opposing views and opinions we
25:13
Ejaaz: want to hear it because like we we want to be able to know whether we're
25:17
Ejaaz: kind of like on the right track or not josh and i take this stuff
25:20
Ejaaz: pretty seriously and we see a huge amount of potential in google and we kind
25:24
Ejaaz: of don't see how they can fail which is either a great opinion or a really really
25:29
Ejaaz: bad one so let us know in the comments um if you aren't subscribed or you don't
25:33
Ejaaz: have notifications turned on please do both of those things it's around 80 of you um,
25:38
Ejaaz: in 2026. We would like to get that down to what, Josh?
25:41
Ejaaz: 30%, 20%, 0%?
25:44
Josh: Yeah, we got to hit 30k subs too. We're right there and we need like 500 more.
25:48
Josh: So if you want to help with that cost, tell your friends, tell your friends,
25:51
Josh: friends, hit the subscribe button.
25:52
Josh: It goes a long way in helping us start off strong in this new year.
25:55
Josh: Because by the end of this year, there's a lot, there's lots going to happen.
25:59
Josh: And it's going to be crazy. It's
26:01
Josh: going to be chaotic. And you're going to want to be here for the ride.
26:03
Josh: So we'll cover it three or four times a week, every single week so
26:06
Josh: tell your friends that it comes hopefully packaged in these 25 minute episodes we
26:09
Josh: did pretty good today i think we were we kept it moving today so hopefully this
26:12
Josh: was enough for you to squeeze it into whatever window that you're listening
26:14
Josh: to these episodes in we'll see you next time where we talk about claude because
26:17
Josh: it's freaking awesome so you're going to want to stay tuned for that one uh
26:20
Josh: really cool paradigm shifting platform um but yeah until then hope you enjoyed
26:24
Josh: this episode and we will see you guys on the next one see you guys