It seems unlikely that large matrix multipliers will become useless. If nothing else, Google uses AI extensively internally. It already did in ways that weren’t user-visible long before the current AI boom. Also, they can still put AI overviews on search pages regardless of what the stock market does. They’re not as bad as they used to be, and I expect they’ll improve.

Even if TPU’s weren’t all that useful, they still own the data centers and can upgrade equipment, or not. They paid for the hardware out of their large pile of cash, so it’s not debt overhang.

Another issue is loss of revenue. Google cloud revenue is currently 15% of their total, so still not that much. The stock market is counting on it continuing to increase, though.

If the stock market crashes, Google’s stock price will go down too, and that could be a very good time to buy, much like it was in 2008. There’s been a spectacular increase since then, the best investment I ever made. (Repeating that is unlikely, though.)