The effect of the first version of the Tiger Algorithm exceeded Meng Fanqi's expectations. This may be because the detection and troubleshooting algorithm a few years later reduced the dimensionality of the current speculation method.
It may also be because the selected area is relatively prosperous. California's overall economic situation is in a leading position in the United States, about the level of the top five or seven.
In economically developed places, there will always be more such speculation.
But no matter what, the Tiger algorithm alone has been initially tested and has an improvement of nearly 10. Even if it is conservatively estimated, the final benefit will be more than 6-7.
According to estimates from the 2013 financial report, Google's advertising revenue in a single quarter in 2014 should be around US$12.5 billion, of which the profit due to the new algorithm is likely to be around US$1 billion.
Although according to the agreement, Meng Fanqi can only draw 30% in 2014 and 10% in 2015, but seeing US$300 million in money within three months is already an unprecedented myth.
Moreover, it only took less than a week to achieve this result.
What Meng Fanqi didn't expect was that this matter had even directly affected Google's board of directors.
It's no wonder that quarter-to-quarter growth is usually single digits at most. This time, the algorithm improvement part suddenly reached a percentage close to 20. It's strange that the directors who take the bulk of the dividends won't notice.
I just didn't expect it to be so soon.
Today, Google, with a market value of hundreds of billions of dollars, is a Silicon Valley myth, and the board of directors of this myth is composed of founders Sergey Brin, Larry Page and former Google CEO Schmidt.
Google's most core and most successful advertising revenue method is what Schmidt brought to Google.
Schmidt, who is no longer CEO of Google, has not completely retired. He is still using his experienced experience and extraordinary wisdom to make suggestions for Google.
His shrewdness has protected Google over the years, and he has dealt with many risks even when there was no sign of them.
This also proves what a correct and wise choice the two founders made in bringing him on board.
The trio has always been in a pattern of one movement and two silences.
Schmidt was at the overall helm, proposing many plans to maximize Google's profits and wealth.
As technical geniuses, the two founders have veto power from the overall strategic and technical levels.
Without Brin and Page, Google would not have strong search technology and unique spirit, but without Schmidt, Google would lack its strongest revenue capability.
Unable to gradually extend its hands to so many other fields, there will be no huge energy to reshape the Internet landscape.
Perhaps only someone like Schmidt, who has a strong technical background (Bell Labs) and has successfully made amazing achievements in the field of operations management, can work with Brin and Page on such an equal footing.
Schmidt, as the person who single-handedly tapped out the potential of Google advertising from the source, is naturally the person best able to understand the power of this algorithm update.
The advertising department's profit judgment for the next quarter was placed on the board of directors' table, and no one could ignore the dozen-point profit increase.
About 5-6% is the estimated improvement, and about 10% is the algorithmic profit.
The key is that this thing does not cost anything, it is just an optimization of the ranking of recommended results under existing conditions.
A useless thing.
"A genius is really a genius who makes money." Schmidt knew how many rounds of optimizations the current Google advertising system had, and being able to easily extract 5-6% from it was the result of the efforts of the entire department.
He, Meng Fanqi, single-handedly achieved an improvement of more than 10 points. Such an excellent ability to attract money cannot help but be appreciated by the board members.
Google's revenue also has to subtract some hidden costs that only the directors know. In the eyes of the directors, the actual effect of algorithm improvement is actually better than Meng Fanqi expected.
However, while they were delighted, they also found that the share ratio of the algorithm provider seemed a bit alarming.
"Who signed this unfortunate contract? According to this calculation, it will be divided into 300 million per quarter and 1 billion per year." After talking about business, Schmidt suddenly mentioned the amazingly excellent test results and the exaggerated Share amount.
It’s no wonder Schmidt said this. As one of the three giants on the board of directors, his profits from Google over the years have only amounted to tens of billions of dollars.
Founder Larry Page, with a net worth of US$23 billion this year, has become the 20th richest person in the world.
Now suddenly a new person comes in. He started with an algorithm and removed so many people. It would be outrageous to replace him with anyone else.
"Jeff signed it." On the other end of the video conference, Page's face darkened. It was Jeff who signed the contract, but as the current CEO, he nodded to this sharing contract.
"Both Jeff and Hinton think he is a rare talent in the field of AI."
"Why are artificial intelligence talents writing advertising methods?" Schmidt was a little speechless. This contract seemed a bit outrageous to him, and he would never have signed it. "What did you do? You shared so much profit."
"How the hell did I expect that his advertising algorithm was so slick?" Page took over Google from Schmidt in 2011 and drastically cut off projects that were not generating enough revenue.
He also agreed with Jeff and focused on investing in projects related to autonomous driving and artificial intelligence. Meng Fanqi was recruited this time for these projects.
"I recruited you to work on artificial intelligence. It's better for you to go and pay for ads for me, right? I really belong to you." Page was in a happy and complicated mood at this time.
Xin said, no wonder Jeff’s expression was strange after he came back, he must have noticed it a long time ago.
Even if the original imaging and artificial intelligence projects could be divided into tens of millions, it would still take at least a year, right?
Who would have thought that Meng Fanqi had completely changed to a completely different track. Before anyone came, he was waiting to see the 2014 financial report to share the money.
I hired you as a milkmaid, but you hugged a sheep and plucked it out.
They also specially picked up the one that the farmer cherished the most.
However, in the final analysis, sharing more means earning more. Schmidt immediately paid attention to the amount of sharing.
But seeing that it was only 30% in one year and 10% in the second year, I still thought it was acceptable.
After all, the sheep have gained a lot of weight, gained several kilograms, and the lack of hair is not a big deal.
But the three of them had no idea that this was just the first of Meng Fanqi's three advertising moves.
You know, even for the three giants on the board of directors, three hundred million U.S. dollars cannot be said to be a small number.
Even the Tesla shares that Brin sold out of anger because he suspected his wife was having an affair with Musk were only worth 360 million.
Every time Meng Fanqi made a move, the three board members had to go through the process of feeling heartbroken and then accepting it.
Fortunately, Meng Fanqi didn't remember much in this area. After a few rounds of swinging the axe, he ran out of moves.
This is why he did not have any conflicts with members of the board of directors over profits during his tenure.
"The amount of the share is too large, and it is impossible to give too much cash. There is still room for equity, tax avoidance, and laws in different continents. Let's arrange for someone to do it specifically." Schmidt came to the final conclusion on this matter. , “Cash still has to flow to more valuable places.”
If Meng Fanqi were here, he would know very well that the "more valuable place" Schmidt refers to is the smart home company Nest.
In January 2014, Google acquired Nestor for US$3.2 billion, which was its largest acquisition since the acquisition of Motorola.
In the end, Meng Fanqi's profits from relying solely on the recommended advertising algorithm within a year will be comparable to this acquisition. Considering this situation, this contract is indeed a bit outrageous.
Meng Fanqi, who was continuing to immerse himself in writing code, had no idea that in addition to Google's board of directors, a former Google executive had noticed him.
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