Alphabet (GOOG, GOOGL) shares made headlines recently after the company's AI division saw a series of high-profile departures.
Gene Munster, managing partner at Deepwater ****** et Management, recently said on CNBC that the brain drain at Google should not be ignored, arguing that the departures of key AI researchers could have implications beyond the headlines. Munster said Google has seen about six major departures over the past three months and that the loss of talent could affect the company's culture of innovation and its ability to develop future AI models. He also pointed to signs that Gemini has started to slip in AI model rankings relative to competitors. He thinks these developments are not a positive trend.
At the same time, Munster highlighted significant improvements from Grok, saying he expects the AI model to potentially break into the top three models as new versions are released. Grok was developed by xAI and is integrated into X, while xAI is now part of ****** eX following ****** eX's acquisition of the AI company.
The market is figuring out ****** eX isn't just a ****** e company. The ****** e business contributed just 12% of Q2 revenue and ****** ysts think the contribution of ****** e may keep shrinking as other streams kick in. Connectivity (Starlink) brought in $4.29 billion, up 66% year over year, with 12 million subscribers, double last year's count. AI brought in $2.56 billion, up 247% year over year, boosted by a big Anthropic deal.
Musk guided to a $100 billion annualized revenue run rate by December, up from a Q2 run rate near $31 billion. If ****** eX hits it, the stock trades at 14x that figure and looks reasonable. Bulls also point to Musk's math on AI: if ****** eX can push AI compute capacity from 1.4 GW today to 15 GW by end of 2027 at $50 million per megawatt, that's $750 billion in annual AI revenue potential.
#grok
Gene Munster, managing partner at Deepwater ****** et Management, recently said on CNBC that the brain drain at Google should not be ignored, arguing that the departures of key AI researchers could have implications beyond the headlines. Munster said Google has seen about six major departures over the past three months and that the loss of talent could affect the company's culture of innovation and its ability to develop future AI models. He also pointed to signs that Gemini has started to slip in AI model rankings relative to competitors. He thinks these developments are not a positive trend.
At the same time, Munster highlighted significant improvements from Grok, saying he expects the AI model to potentially break into the top three models as new versions are released. Grok was developed by xAI and is integrated into X, while xAI is now part of ****** eX following ****** eX's acquisition of the AI company.
The market is figuring out ****** eX isn't just a ****** e company. The ****** e business contributed just 12% of Q2 revenue and ****** ysts think the contribution of ****** e may keep shrinking as other streams kick in. Connectivity (Starlink) brought in $4.29 billion, up 66% year over year, with 12 million subscribers, double last year's count. AI brought in $2.56 billion, up 247% year over year, boosted by a big Anthropic deal.
Musk guided to a $100 billion annualized revenue run rate by December, up from a Q2 run rate near $31 billion. If ****** eX hits it, the stock trades at 14x that figure and looks reasonable. Bulls also point to Musk's math on AI: if ****** eX can push AI compute capacity from 1.4 GW today to 15 GW by end of 2027 at $50 million per megawatt, that's $750 billion in annual AI revenue potential.
#grok
6 days ago
