I’ve been a Google shareholder since 2010 and I'm thankful. But yesterday’s earnings, and the 12% collapse that followed, left me thoroughly disappointed.

Search is under siege. Gemini isn’t leading the AI race. And Google is spending like a drunken sailor to catch up.

Spending $200 billion in CAPEX is more than the GDP of most countries. And free cash flow just went negative $9 billion for the quarter.

What does $200 billion buy you? Third or fourth place in the AI race, depending on who you ask. Behind Anthropic. Behind OpenAI. Maybe neck and neck with whoever else is closing fast.

That’s pathetic. And as a shareholder, it’s demoralizing.

Googles' Massive Head Start

Here’s what frustrates me most.

Google researchers wrote the 2017 paper that introduced the transformer, the “T” in ChatGPT. Google owns DeepMind. It designs its own TPU chips. It has Search, YouTube, Android, Gmail, and roughly 3 billion Chrome users.…