**Google OpenAI and the Red Sea **
Published in 2005, John Battelle chronicles the rise of Google among a sea of competitors in a year when Google was worth around $23 billion in market capitalization. Now, with a value exceeding $1.6 trillion and a workforce of over 100,000, the influence of Google on modern society is undeniable.
The narrative of Google is surprisingly relevant considering its age. Google was able to beat out what was then a red-sea of competitors by combining a reticence to monetize (many competitors were monetizing via a portal/banner ad strategy), an emphasis on maximizing user value through a clean UI, better search results, and a willingness to accept false positives when it came to prioritizing users over businesses. The pot of gold at the end of this path was bigger than almost anybody realized, and many of John Battelle’s ‘what-if’ scenarios are now functioning companies like Vivino and applications of Google Maps.
Nearly 20 years later and through the intervening waves of web 2.0 and web 3.0, Google’s strategy provides the blueprint for how to differentiate itself from competitors like OpenAI. The priority should be on delivering value to the userbase over monetization. This time, the value is delivered via a chat interface instead of a search box, posing an even greater challenge to monetization. Obsess over speed and quality (intelligence) of results. Ensure alignment with the userbase by taking time on safety considerations before releasing models, and use venture-capital as a means to continue pursuing the pot of gold at the end of a path paved by tens of billions of eyes.
** 84th book of 2023 **