Sergey Brin said compute is dessert. The companies winning the AI race right now are not the ones with the most chips. They are the ones with the best algorithms.
Every headline you read about AI is about data centers, Megawatts, and Nvidia orders. Billions in infrastructure and more. The entire investment thesis of the last three years has been built on compute scaling as the primary moat.
Sergey thinks that framing is wrong.
He pulled out an example from physics. The N-body problem. Scientists have been running those simulations since the fifties. Over the decades, raw compute improved on Moore's law. But the algorithms to solve the problem improved faster. Not slightly faster. Far faster. The algorithmic gains made the compute gains look small.
He says the same thing has happened in AI over the last decade.
Compute is not the meal. It is the dessert. You still want it. Nobody is turning down frontier compute. But the companies that figured out the algorithms first are the ones actually ahead.
The market is pricing AI winners by who has the most chips.
Sergey Brin just said that is the wrong scorecard.
The ones who win this are not building the biggest data center. They are solving the harder math problem.
The word "algorithm" comes from the name of 9th-century Persian mathematician al-Khwarizmi, whose Latinized name "algorismi" was used to refer to his systematic methods of calculation.
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From Donald Trump Truth Social 05/10/25 11:58 PM
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