An often overlooked extra advantage to Google is their massive existing ad inventory. If LLMs do end up being ad supported and both products are roughly the same, Google wins. The large supply of ads direct from a diverse set of advertisers means they can fill more ad slots with higher quality ads, for a higher price, and at a lower cost. They’re also already staffed with an enormous amount of talent for ad optimization. Just this advantage would translate into higher sustained margins (even assuming similar costs), but given TPU it might be even greater. This plus the gobs of cash they already spin off, and their massive war chest means they can spend an ungodly amount on user acquisition. It’s their search playbook all over again.