Google is the last remaining clean AI hyperscaler story because it lacks the embedded problems of Microsoft, Meta, and Oracle.
Josh explains that Google's AI story is untainted by the poison of Microsoft's giant enterprise SaaS business, Meta's questionable data center spending, or the expectations tied to OpenAI, making it the purest bet on AI capex. ✦ AI generated
Josh · The Compound · 2026-07-20 · original ↗
starts at this moment · 19:39
This is the cleanest AI story. It doesn't have the poison that Microsoft has embedded within it in the form of this giant enterprise SAS business. Doesn't have the meta question mark. Why the fuck are they building data centers? Why are they now talking about leasing excess capacity in their data centers? Doesn't have it. Doesn't have the taint of the open AI expectations. Nobody has to believe in Sam Altman to believe that Google will hit. It doesn't have the problems of Microsoft, Oracle, Meta. I call it the last remaining standing clean AI hyperscaler story.
verbatim transcript · starts at 19:39
19:43this is like the groundhog um uh not seeing their shadow and spring is coming early and we could see all of these capex sell-offs reverse hard to the upside um if if if Google's going higher with their estimates. So, this is the cleanest AI story. It doesn't have the poison that Microsoft has embedded within it in the form of this giant enterprise SAS business. Doesn't have the meta question mark. Why
20:12the [ __ ] are they building data centers? Why are they now talking about leasing excess capacity in their data centers? Doesn't have it. Doesn't have the taint of the open AI expectations. Nobody nobody has to believe in Sam Alman to believe that Google will hit like it doesn't have the problems of Microsoft, Oracle, Meta. I call it the last remaining standing clean AI hyperscaler story. >> It's the blue magic.
20:40>> It's the blue magic. And to me, this is the one that determines whether or not we're going to have fun in in momentum AI capex stocks or not. What are your thoughts? >> Yeah, I like the way you laid laid that out. Um I am curious to see three things. I want to see how search is doing as a standalone. You mentioned that. I think that grew it's still
20:59growing 13%. I'm curious to see if there's any deterioration from what they're doing with Gemini. Uh we'll see. I am curious to see what they say about their capex they raise. Are they going higher still? That's cuz that's going to move the names. >> And then I'm very curious about YouTube. YouTube is doing $60 billion, which is bigger than Netflix. 40 of that is ads. 20 is subscriptions. So it's doing more
21:25revenue than than you than Netflix. Um obviously it costs a lot less to run that business. uh which I don't even think the street necessarily cares about. Maybe they do, maybe they don't. I don't really know. But uh yeah, I think I think it's it's an important one. >> I was listening to Matt Belly. The last episode they put up on the town was about Netflix versus Google and whether