Google's FREE AI is Coming for Your Business!

1 Oct 2025 · 1 min

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In this monologue, Eric Siu recounts a conversation with an AI video‑creation startup, urging them to launch a free tier because Google's AI video and image generation tools pose an existential competitive threat. He argues that Google can afford to offer its generative services for free, as the massive ad revenue it earns (potentially $10 billion) more than covers the billions of dollars in compute costs. Siu warns that without a free offering, the startup will be crushed by Google’s scale and subsidized model, and he stresses the urgency of acting quickly.

Chapters

I was talking to an AI video creation company. They're just picking my brain. They do good revenue, not like $1 million, $2 million, like substantially more. They're not at $100 million, but you get the point, right? I'm like, your biggest threat, I'm like, you guys need a free version of your product. And I was like, you need this as quick as possible. And I'm like, your biggest threat is Google's video generation and image generation products are amazing. I've used a lot of the ones in the space. I actually think Google has the best video and image generation products out there. I agree. Hands down. I was like, they're going to crush you. And if you don't believe it, even if you're growing, market's big, they're going to crush you because they can just make everything for free due to the fact that if it costs them $2 billion to run it for free, but it generates them extra $10 billion in ad revenue, that's a huge profitable win for them. They'll do it all day. Yeah, all day long.