You mean like web search, webmail, internet ads, maps, calendars, browsers, smartphone operating systems, online document editing, and translation? I mean, I'm not even including stuff they acquired early like YouTube. Google was the most feared company for a decade or more for a good reason: they absolutely devoured competition in what were thought to be mature markets.

Putting aside that several of these were acquisitions, these are all great examples of things where Google introduced something for free because it would make the money through advertising, both directly and through ecosystem effects. Even the paid enterprise versions of these services were a tiny % of Google's overall gross revenue.

Prior to the push into Cloud computing, Ad revenue was well over 90% of all Google gross income, and Cloud was the first big way they diversified. GCP is definitely a credible competitor these days, but it did not devour AWS. Other commercial Google services didn't even become credible competitors, e.g. Google Stadia was a technically exceptional platform that got nowhere with customers.

The question now is whether Google carves out an edge in AI that makes it profitable overall, directly or strategically. Like many companies, there seems to be a presumption of potentially infinite upside, which is what it would take to justify the astronomical costs.

Do you have a source for that ? Because according to official papers submitted by Google to the court this is absolutely not the case