QylexIT News

Google Doesn’t Know How to Spend $50 Billion, Says PayPal Co-Founder

Tuesday, July 17, 2012 4:25:00 PM

 

Conference panels are often sedate, friendly affairs. But that wasn’t the case when Google chairman Eric Schmidt went up against Peter Thiel, PayPal co-founder, investor and well-known libertarian gadfly.

The debate at the Fortune Brainstorm Tech conference in Aspen Monday night tackled the question of whether technology has improved our lives over the past 30 years. Schmidt argued that it had; Thiel claimed progress had stagnated because tech has largely retreated from the real world into a virtual one.

“Google also has $50 billion in cash,” Thiel added. “It has no idea how to invest that money in technology effectively … if we’re living in an accelerating technological world, and you have zero percent interest rates, you should be able to invest all of your money in things that will return it many times over. The fact is you’re out of ideas.”

Schmidt countered that the company had no deficit of business models, but instead suffered from real-world constraints. “What you discover in running these companies is that there are limits that are not cash,” he said. “There are limits of recruiting, limits of real estate, regulatory limits.”

“Then the intellectually honest thing to do would be to say that Google is no longer a technology company,” shot back Thiel. “It’s basically a search engine developed a decade ago … That’s why all these companies are building up hordes of cash, because they don’t know what to do with it, but they don’t want to admit they’re no longer tech companies.”

http://t.co/uKJzm2C1

Qylex IT

Headquarters
1245 S. Cleveland Massillon Rd.
Copley, Oh. 44321
View Map

Connect With Us

Stay connected with QylexIT.
Like us on Facebook
Follow us on Linked IN

Support

IT Support: one size does not fit all. QylexIT saves you IT anxiety and allows you to focus on what you do best - growing your business.
Learn More

Contact

Phone: 330.294.1110
Email: info@qylexit.com
Contact Form

© 2011 - 2017 QylexIT
All Rights Reserved.

Web Design + Development by Next Level Interactive