Chapter 335: Market Domination! Market Domination! Market Domination! (5000 guaranteed monthly pass please!!!)
"Ali Cloud has just agreed to give Ysou greater resource flexibility."
Faced with Li Boming's nervousness, Zhou Shuzi appeared very calm. He patted Li Boming on the shoulder and gave him a reassurance.
Hearing Zhou Shuzi's words, Li Boming breathed a sigh of relief, then shook his head and said with a smile, "A cloud service storage, computing, and bandwidth cost of 100,000 yuan per day can handle 500 million search requests per day."
"If someone had said that to me a month ago, I would have thought they were crazy."
"The Buddha's Hand system's small distributed model surprisingly completes over 90 percent of AI calculations locally on the user, consuming only one-tenth the resources of a typical search engine."
“If I hadn’t seen it with my own eyes, I would never have believed that such technology existed.”
Hearing Li Boming's sigh, Zhou Shuzi nodded in agreement.
Although he is not from a technical background, he has been engaged in high-tech investment for many years and is no stranger to the development of cutting-edge IT technologies through continuous learning and exposure.
Y-search, a search technology that is almost far ahead, has never been heard of before!
In order to reduce computing costs, Ysou adopts a distributed small model architecture. When a user opens the Ysou page, a small model of tens of MB will be gradually loaded in the browser background.
After the user's search request is issued, this small model will first convert the user's request.
Convert it into a request that can be most efficiently understood by Ysou's large model on the Ali Cloud server.
The large model deployed on the Ali Cloud server is what Li Boming calls the Buddha's Hand System.
After the search process returns, the local small model will perform AI rating on the results output by the Buddha's Hand system and then output them to the local page.
Through this small-model distributed computing method, Ysou's computing resources have been greatly saved and reduced, and the computing power consumed by each search request is even lower than that of Google or Qianxun.
More importantly, since a large amount of data processing is done locally on the user, the communication between the small model and the large model is a "black box communication" similar to neural network signals between AIs.
This kind of data that is "not encrypted but cannot be understood by humans" cannot be deciphered even if it is intercepted by a third party, which can greatly protect user data security.
In fact, Ysou’s idea of reducing search company resource consumption through distributed small models is not unique.
The IOT "edge computing" that almost all major Internet companies are currently planning and the "federated learning" just proposed by Google actually follow this idea.
The model of the Foshou system is more similar to the "federated learning" proposed by Google.
However, Google’s “federated learning” is still in the theoretical stage, and is currently only being tried out in the associative input of input methods.
And Ysou has undoubtedly left Google far behind in terms of technology!
Ysou uses an operating cost that is a few tenths of that of Google and Qianxun, yet it can achieve or even far exceed the same request load and better search results as Google!
This is a generational technological advancement!
It’s just like the impact that Apple’s iOS had on Nokia’s Symbian S60 nine years ago!
It took Apple five years from launching the iPhone to completely defeating Nokia.
How long will it take for Ysou to defeat Qianxun and Gugou?
Li Boming's heart was pounding with emotion. Zhou Shuzi looked calm on the surface, but he was actually very nervous inside.
A CTO only needs to consider how to speed up technology iteration and meet operation and maintenance needs, but a CEO has too much to consider.
For example, how to acquire users faster, how to attract advertisers, how to achieve a break-even point as quickly as possible...
These are long-term operational issues. In the short term, the most pressing issue is how to cope with BlackRock's pressure...
Youzi Technology also has investment from BlackRock, although the total is less than 2%. However, as the world's largest asset management company, BlackRock's voice cannot be underestimated.
Da Zhou is different from McAfee. BlackRock cannot force major companies to come up with ESG (environmental, social and corporate governance, in other words, Zheng Zhi's correct diversification) with just one email, as it did in McAfee.
But BlackRock can easily influence certain important figures to support them and force Ysou to comply in other ways.
Ysou is a wholly-owned subsidiary of Youzi Technology. Facing the pressure from BlackRock, although Zhou Shuzi has already formulated countermeasures, he still plans to communicate with Fang Yu by phone first.
"Then how do you plan to solve this problem?" After hearing Zhou Shuzi's telephone report, Fang Yu did not express his opinion, but asked Zhou Shuzi for his opinion first.
Zhou Shuzi paused. "I have two plans here, but because this matter involves the planning of the Y-search milestone roadmap originally set by the board of directors, I still need to discuss it with you before making a decision."
Before Fang Yu could ask further questions, Zhou Shuzi continued, "Let's talk about the first plan first. At the beginning of the month, when we held our first roadmap meeting, we set a target of three years for positive cash flow. But as you know, Ysou hasn't yet generated any official revenue, and our cash flow, including loans, is only 2.5 billion yuan, which is only enough to cover the next 12 months."
"Before, our roadmap was to quickly enter Beimai and achieve rapid revenue growth through advertising and enterprise services."
"But after yesterday's Alcatraz incident, the global economy is facing enormous uncertainty. If we choose a conservative approach, we can take this opportunity to discuss a good financing plan with BlackRock, such as a low-interest or interest-free medium- to long-term loan of $2 billion."
"The benefit is that we can secure a very secure cash flow, ensuring we achieve our goal of returning to positive cash flow within three years. With ample cash flow, Ysou can also focus more on long-term benefits, making overseas expansion much more relaxed and more secure."
Fang Yu remained noncommittal: "What about the second plan? How do you plan to handle it?"
"The second solution is very simple, which is to not deal with it." Zhou Shuzi said calmly.
Fang Yu was indeed very interested when he heard it: "Oh? Can you tell me in detail?"
Zhou Shuzi smiled and said, "The advantage of doing this is that we can take this opportunity to promote Ysou's popularity throughout the English-speaking region and accelerate local user expansion."
"BlackRock is currently exerting pressure through relevant parties within Da Zhou and using its identity as a Yuzi Technology investor to threaten Yuzi Technology and Ysou's subsequent financing."
"The popularity of Alcatraz and the Xianzheng Crisis saved Ysou at least six months of building awareness in Beimai. Even if it's a net investment, it means over one billion yuan."
"If you consider the boost Google's disgraceful role played in this incident gave Ysou, and the revenue boost from saving those six months, the difference could be over a billion dollars."
“I don’t think the relationships BlackRock has found are worth that much money.”
"Of course, this will cause Ysou to get into some trouble, but these troubles can be solved."
Zhou Shuzi's words were rather obscure.
"The core problem with the second option is cash flow."
"With the cost advantages of technological leadership, Ysou's need for financing is far less urgent than it was in the early days of Google. According to our previous calculations, annual fixed costs of 170 million yuan are sufficient to cover Google's current investment in search."
"But this does not mean that our cash flow is sufficient, especially when the expansion speed of Beimai is much faster than expected."
"I just had a discussion with the finance and operations teams. According to our estimates, if we want to take advantage of this opportunity to rapidly expand Ysou's market share in Beimai, we'll have to spend at least an additional 200 million yuan per month."
"That is to say, the current cash flow may not be able to sustain for more than half a year if it is not replenished."
"For other startups, rapid expansion is certainly a good thing. After raising their valuations, they can obtain cash flow support through equity financing."
"Ysou has already decided not to go public, which has blocked a considerable number of investors and increased the uncertainty of financing."
"Six months from now, if our revenue performance falls short of expectations, Ysou may face the risk of a cash flow break."
"In this case, it may be necessary for Youzi Technology or other investors to continue to invest in order to ensure the rapid expansion of Ysou."
"Because it involves the future route, I must communicate with you before I can make a decision on this matter."
Having said that, Zhou Shuzi took a sip of water tactically.
Fang Yu touched his chin for a moment and smiled knowingly.
It seems that I made the right choice as the CEO of Ysou. He is indeed smart.
He understood that Zhou Shuzi's call seemed to be asking for money, but in fact it was a test.
He wanted to test how much Youzi Technology valued Ysou and how much of a lie there was in the plans for Ysou that they had told him before.
If Fang Yu chooses the first option, it does not mean that he does not attach importance to Ysou, but at least it means that Ysou is not in the first camp in Fang Yu's mind, and he has not planned Ysou as part of his main business.
If you choose the second option, it depends on how much resources Fang Yu will allocate to Ysou.
The more resources there are, the more attention they pay.
The worst case scenario is that Fang Yu chooses the second option, but does not provide any resources, leaving Ysou to figure it out on his own.
This means that Ysou is the kind of new department that the boss shouts "very important!", "the most important growth point in the future!", "strategic position!", but in reality is just a one-shot deal. If it succeeds, that's great, but if it doesn't, that's fine too.
Many large companies have such departments.
For example, Taobao and JD.com are now engaged in the booming community group buying, offline convenience stores, and unmanned vending machines.
Da Qiangzi and Jack Ma said in large and small meetings that Taobao stores and new channels are important strategic deployments of Taobao and JD.com, and are future profit growth points and top priorities in the future.
But in reality, regardless of how much resources can be given, just look at who is responsible for this part of the business to know its true importance.
If the person in charge of this part of the business is originally a powerful figure in the group or the boss's confidant, it means that the group may really attach great importance to this matter.
However, if the person in charge of this part of the business is recruited from outside, or is promoted from a particularly outstanding middle-level manager to a senior position, it means that the importance of this business is not so-so.
People always say that professional managers cheat their bosses, but in fact, it is bosses who cheat professional managers more often.
After all, professional managers can only be regarded as larger cattle and horses.
At most, he can be considered the "leading horse".
The most important thing for a professional manager to avoid failure is not to accept the promises made by his boss.
Fifty percent of those so-called strategic development directions are the result of bosses being fooled by certain economists, MBA classes, business forums, and the like, and the remaining 49% are the result of bosses making up their own minds on the spur of the moment.
If a professional manager really believed the boss's promise, gave up his original core business, and ran to the department ambitiously to build a career, it would be fine if there were no problems. But when he encountered some problems and asked the boss to redeem the resources, he found out that the department was nothing.
Having said that, if a professional manager encounters that one percent of true "new strategy", it is indeed a once-in-a-lifetime opportunity.
Ysou does look like that one percent, but who can be sure?
Fang Yu knew that Ysou was an indispensable part of his overall strategic planning, but Zhou Shuzi didn't know.
Moreover, with Qianxun inside and Gugou outside, under the siege of these two giants, even if the technology is one generation ahead, it is not 100% possible to succeed.
When Apple first started developing the iPhone, it had no confidence that it could defeat Nokia.
For Zhou Shuzi, determining the importance of Ysou in Youzi Technology and whether it can be successful depends not only on technology and luck, but also on how much resources his boss, Fang Yu, is willing to invest in Ysou.
If Fang Yu did not invest resources and there were no better opportunities, Zhou Shuzi would not leave, but he would definitely try his best to seek a powerful position in the most core department of Youzi Technology.
This is the inevitable mentality of professional managers.
"Brother Shuzi, you are also a member of the Ysou board of directors. You should be well aware that Ysou's strategic goal is to use all means to gain a higher global market share as quickly as possible."
"Since you believe the second plan is more beneficial for Ysou's overseas expansion, there's no reason for me not to support it."
"As for the cash flow issue you mentioned, that's exactly what I'm going to discuss with you over the next couple of days. I plan to launch Ysou's first round of financing by August at the latest, selling 10% of our equity to raise 1.5 billion dollars."
"With this 1.5 billion dollars, Ysou's overseas operations center and data center can be launched."
"Of course, we still need to find time in the next two days to discuss the specific plan in detail."
!!!!!!!!!!!!!!!!!!!!!
Zhou Shuzi never expected to get such a response from Fang Yu.
He guessed that Fang Yu would choose the first option to exchange interests with BlackRock, and he also guessed that Fang Yu would choose the second option to continue investing. He also guessed that he would start financing at the end of the year as Ysou's market share and revenue grew month-on-month, but he never guessed that Fang Yu would start financing in August.
No, even if he guessed that financing would start in August, he could not have guessed that Fang Yu actually wanted to use 10% of the shares to raise 1.5 billion Malaysian dollars!
Zhou Shuzi himself comes from a venture capital background. He worked at DST (Digital Sky), the largest venture capital fund in Luosha, for five years. With his extraordinary vision, he invested in Dami and Toutiao. It was precisely because of his experience with Lei Jun at DST that he was recruited by Lei Jun to Dami last year and became the CEO of Dami.
Therefore, he is very familiar with corporate valuation and financing.
A valuation of 15 billion dollars?
What is the concept?
Now Qianxun’s market value is only 30 billion yuan!
Although Qianxun’s market value has fallen from 60 billion yuan at the beginning of April to 30 billion yuan, and it is still in the recovery stage, how long has Ysou been established?
It will only take three months at most!
By August, it will only be less than half a year.
In half a year, another giant unicorn appears?
And it’s a giant unicorn that’s half the size of Chihiro?
Impossible, it is impossible that any investor would be so stupid!
This valuation is obviously too high. A reasonable valuation now should be between 500 million and 1 billion dollars. Even 1 billion is a bit too high.
After reaping the benefits of this "Devil's Island" business, if there is no risk of backlash, the valuation may reach 2 billion, but it will never exceed 3 billion.
Fifteen billion dollars.
With a valuation of more than five times, how could any investment institution invest money?
The most important thing is that Ysou’s business strategy is to be a private company that is not listed. The biggest exit channel for venture capital and fund companies has been blocked, and there will definitely be even fewer institutions that want to invest.
Large PE and asset management companies that focus on the secondary market are often not very interested in non-listed companies.
Previously, BlackRock, Vanguard, and Fidelity jointly invested in Youzi Technology. That was because in the incident where Qianxun stole the large orange model, they exchanged interests with Youzi Technology in order to prevent Youzi Technology from pursuing them relentlessly.
In addition, Youzi Technology is a leader in AI, and the Orange large model has been successfully commercialized. No matter how you look at it, this deal is a win-win.
Only in this way can the investment review be passed.
Why does Y search work?
There is no revenue and no market share. Is it just relying on the generation-leading technology and the dividends of "Devil's Island"?
Are we overthinking capitalism?
Or did you dream that there was thunder in the sky and it struck the Google and Qianxun computer rooms?
For a moment, Zhou Shuzi even doubted the correctness of his joining Ysou.
"I understand your concerns, but we still need to prepare a financing plan. If Ysou doesn't start financing in August, Youzi Technology will continue to inject sufficient liquidity into Ysou."
"In short, market share! Market share! Market share!"
"Ysou's milestone roadmap remains unchanged. Market share is our only goal at this stage! Youzi Technology will provide all the necessary resources!"
Fang Yu was very firm and his fingers unconsciously exerted a little force, causing Black Widow next to him to be pinched so hard that she couldn't help but meow.
Zhou Shuzi was listening with great confidence and excitement when he suddenly heard some sound on the other end of the phone.
"Oh, nothing. I'm discussing a few investment projects to see if there's any opportunity to buy shares."
Fang Yu explained seriously, and then rubbed Black Widow's skin to reduce swelling and relieve pain.
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It’s double the amount at the beginning of the month! ! ! !
(End of this chapter)
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