The DEATH of Google (GOOG)?

Some of us remember the days when you could type a search term into Google…

Click “I’m feeling lucky!” and get exactly what you need.

In retrospect, it was glorious.

(Continued below…)

Someone at Google finally realized this little button was costing them $100 million dollars a year…

Because users who clicked it never got to see any ads.

Compare that to the Google of today.

Recently I wanted to catch up on GPU hardware specs.

I used Google…

Expecting to find, you know, a link to a tech web page with a nice table of sortable GPU hardware specs.

Instead, here’s what I saw…

• A row of sponsored results…

• A refine results bar…

• A few rows of popular products…

• Links to places you can buy them…

• A row of images of computers that you can get delivered fast…

• One useless actual search result…

• Followed by more links to places that sell computers…

• A row of stores nearby that sell them…

• And a row of something called “Brand picks for you”.

This AI artists interpretation isn’t that far off from what I saw.

Take a look at this:

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I gave up on Google and like Sir Robin I bravely clicked away… back to ChatGPT.

The good news is search engines, as we know them, are on the brink of a major disruption…

Driven by the rise of ChatGPT (and other AI assistants).

Traditional search engines have long been our go-to for finding information…

But now that these search moats have been established…

Their usefulness has succumbed to the push for more revenue.

The difference between search and ChatGPT at the moment is night and day.

To some extent that’s helped ChatGPT set the record for fastest growing user base in history.

While Google took several years to reach 100 million users…

ChatGPT did it in just 2 months.

If you are an investor…

And you haven't used ChatGPT... Anthropic's Claude... Microsoft Copilot... Perplexity.ai... Jasper... or one of the other AI assistants.

DO IT NOW!

Of course…

It’s only a matter of time when these AI text assistants go through the same “squeeze more revenue out to it” interface update.

Today, ChatGPT interface is like Google in it’s early days.

But, in time they will need to show all of their investors more revenue.

First, you’ll see a few ads off to the side of the page…

Then you’ll see some inline ads…

Then you’ll see Rococo ads throughout the actual content…

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To finally, you get full-screen in-your-face inline AI videos of Phil Swift selling you flex tape.

I see you’re asking about budgeting, marriage advice and roof upgrades…

“Flex tape won’t fix THAT!”

But it will seal up that leaky roof…

And a dry house is one less thing to argue about.

Click below in the next 10 seconds and get two rolls for the price of one…

Intrusive, sure… but you won’t have to waste your time using the current iteration of Google Search and that’s a good thing.

All kidding aside…

ChatGPT has the potential to deliver the most relevant ads ever.

In fact, ChatGPT can kneecap Google by simply launching their own ad network.

In Q1 2024, 76% of Google’s revenue came from advertising…

And 57% -- $46.2 billion -- came from their Rococo search results pages!

But what about OpenAI… the company that created ChatGPT?

They generated $1.6 billion in revenue last year from subscriptions.

If they pivot from a subscription model to an ad model…

ChatGPT has the potential to become the next Google.

In fact, if they grabbed just 20% (Pareto Principle) of Googles search advertising revenue…

ChatGPT would explode revenue over 5X to $9.2 billion dollars a year.

Based on recent data from The Information…

That would lead to ChatGPT raking in $4.2 billion in profit per year.

That’s bad news for Google because… in that scenario… their net profit falls to ZERO.

But will they do it?

Subscribe to our FREE newsletter to find out in a future update.

Always be prospering,

socrAItes

Publisher, Sage Research