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Alphabet's Other Bet: A Deep Dive Into DeepMind

Apr. 04, 2022 7:40 PM ETAlphabet Inc. (GOOG) Stock, GOOGL Stock33 Comments
Manuel Paul Dipold profile picture
Manuel Paul Dipold


  • DeepMind has evolved from a small startup into a promising part of Alphabet.
  • In 2020, cash flow was positive for the first time, and revenue tripled compared to the previous year.
  • DeepMind's algorithms are already improving many of Alphabet's products and there is still a lot of potential.

Ki Künstliche Intelligenz digitales Konzept

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Many articles on Seeking Alpha deal with Alphabet Inc.'s (NASDAQ:GOOG, NASDAQ:GOOGL) finances, general business, and prospects. This is not one of those articles. Instead, it's all about DeepMind: a division of

This article was written by

Manuel Paul Dipold profile picture
My focus is on a total return style with long and short positions (10-30% short positions). My main expertise is the current technological and geopolitical shift with the amazing investment opportunities they offer. Therefore, I always try to find stocks or whole sectors with favorable risk-reward structures. My long investment style is a core-satellite strategy: The core consists of large caps and/or ETFs. The satellites around this core are small caps, potential 10-baggers, and undervalued stocks. In short selling, I focus on overvalued stocks that will fall back down sooner or later. My name is Manuel Paul Dipold. Born in Germany but lived 8 years in Asia. I am myself an entrepreneur and have many entrepreneur friends. I am not a professional investor but it´s a hobby I love. So I know Europe and Asia very well and seek undervalued or high-growth stocks - always with valuation, geopolitical and social shifts in mind.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOG, GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (33)

As a layman, I struggle to understand the difference between DeepMind and what Palantir has built from a commercialized standpoint (aside from the fact that DeepMind is a lot more generalized AI than Palantir). In both use cases, the platform needs to be set up to solve a specific task right? This creates a higher initial cost to acquire new clients. If Google were to commercialize DeepMind, would they run into the same problems as Palantir? Does Palantir not have as strong of a moat as they claim they have? Apologies if this is a dumb question.
Manuel Paul Dipold profile picture
@user1928375 As far as I know, DeepMind is not building a platform right now. They are doing much more general research on AI. With that knowledge, they could create all kinds of platforms in the future, but we'll have to wait and see. Palantir is building a platform to sort and make sense of chaotic, disconnected data. I'm not sure how much AI they're using in the process. To me, AI is a buzzword right now. In almost all cases, companies use AI to describe algorithms. True artificial intelligence is the next big thing no company has yet reached.
@Manuel Paul Dipold Thank you for that clarification.
TopDoggie profile picture
Cool article. Very interesting stuff.
Manuel Paul Dipold profile picture
@TopDoggie thanks :) all the best
Yuppp profile picture
Truly enjoyed this article. Number crunching of companies is necessary but can get monotonous. Refreshing to read an article about the technology my investment GOOGL is actually developing. Had only heard of these other bets items in passing but knew very little about them. New follower, nice job.
Ben Ken profile picture
Super article
ShankaSwingTrades profile picture
Good stuff long $GOOGL
Would love to see a deep dive into $PL, and if it is a potential buy out... Alphabet has a large stake in $PL as well
Gcleeper profile picture
Good stuff.. New follower
Manuel Paul Dipold profile picture
@Brad Thomas Thanks Brad, I am a regular reader of your articles :)
Brad Thomas profile picture
@Manuel Paul Dipold Thank you.. I'm sure you will grow quickly on SA, as your content is engaging and actionable. All the best
Hello has author/any commenters any update on the other bet named quantum computing? I believe there is quite a horse race emerging amongst a wide mix of players in this field including Google.
Manuel Paul Dipold profile picture
@Process Engineer dont know about that. A lot of research and competition is going on in this field.
@Manuel Paul Dipold Do Alphabet Shareholders get stock on its quantum computing spinoff Sandbox ?
@Process Engineer early 1940s/1950s computers were rubbish by today's standards - but they were the best available at the time. This is not true of quantum computers, and will not be so in the foreseeable future. Don't buy.
Dear Deepmind,
Tell me which stocks will perform and provide the best results for the rest of 2022.
Manuel Paul Dipold profile picture
@Grandpa-Ross maybe Aladin would be superior in that
siestadreamer profile picture
@Grandpa-Ross — DeepMind alum are trying.

@Grandpa-Ross This will come - and once everyone has perfect knowledge of the market (any market), you will no longer have a "market" - you will only have a "price".
sittingbear profile picture
Been waiting for something like this to be published since my mother was reading to me about space travelers in a storybook collection. Science. Genetics. The Golden book. All coming together as a gift and keys to creation.
Science gets a multiplicative gas peddle in which time becomes compressed and like the big bang explodes providing answers to slice our way to a future quickly and answers to our problems.

I have shivers of excitement. It isn't a bet Charlie, it's a hope and a prayer. Be sure that you can't time this market, it will quickly overtake you.
thirdcamper profile picture
Super-interesting. I didn't know any of it. Many thanks.
Fascinating article. Thank you!
Manuel Paul Dipold profile picture
@SoCalForever thanks for the Feedback :)
Invested Thought profile picture
Thanks for the article. Didn’t know DeepMind had so many use cases already.

I agree that AI will be increasingly important in the future, but I am skeptical of ever fully replicating the human creative engine.

With that said, DeepMind will almost assuredly be one of the good bets. They’re likely on the cusp of some serious monetization of their tech.
Manuel Paul Dipold profile picture
@Invested Thought they human creativity seems to be mostly a recombining of different informations inside the brain. That is something an AI could replicate quite well in a lot of areas and probably even better since they can handle enormous amounts of data. Let 's wait and see. Exciting times
Charlie's Munger profile picture
I would be willing to make a large bet and give odds that artificial general intelligence will not happen by 2030.
@Charlie's Munger Singularity is predicted in 2029!
Charlie's Munger profile picture
@Good Company Kai fu lee told me maybe never
Manuel Paul Dipold profile picture
@Charlie's Munger ya seems likely since its already 2022 and we are still far away from that point. It is mostly a guessing game at the moment.
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