`I am really struggling to see what's the investment thesis behind Google valuation increasing 2x in response to AI`
Google is basically Nvdia (TPUs), Tesla (Waymo Self-Driving), Hyperscaler, Netflix (YouTube) and a massive VC (Anthropic, Databricks, SpaceX, etc.) all rolled into one.
Their valuation isn't really a 2x'ing so much as a reversion from halving.
I think OC's point is that they're breaking up their own monopoly with a complete lack of product vision.
Google Wallet/Pay/Android Pay could have become Stripe, Venmo. Google Hangouts/Meet/Chat could have become Zoom, Slack, Teams, iMessage, etc. Google Finance could have become Robinhood, Mint.