I am the only one who practices magic: I practice magic in the city

Chapter 335 Market dominance! Market dominance! Market dominance! (5000 guaranteed monthly tickets 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: "One hundred thousand yuan of cloud service storage computing and bandwidth costs per day can solve 500 million search requests per day."

"If someone had said this to me a month ago, I would have thought they were crazy."

"The distributed small model of the Buddha's Hand system can complete more than 90% of AI calculations locally on the user's computer, consuming only one-tenth of the resources of an ordinary search engine."

“If I hadn’t seen it with my own eyes, I would never have believed that this technology existed.”

Hearing Li Boming's sigh, Zhou Shuzi nodded in agreement.

Although he is not a technical person, 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.

Y-search is a search technology that is almost far ahead of others. I have never even heard of it 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 dozens of MB will be gradually loaded in the browser background.

After the user sends a search request, 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 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 "not encrypted data but incomprehensible to humans" data 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 are actually based on 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 Ysearch has undoubtedly left Google far behind in terms of technology!

Ysou uses only a few tenths of the operating cost of Google and Qianxun, but can achieve the same request load and better search results as Google, or even far exceed it!
This is a generational technological lead!
It's just like the blow that Apple's IOS dealt to 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 in a state of panic.

A CTO only needs to consider how to speed up technology iteration and meet operation and maintenance needs, but as a CEO, he has a lot to consider.

For example, how to acquire users faster, how to attract advertisers, and how to achieve a balance between income and expenditure as soon as possible...

These are long-term operational issues. In the short term, the most urgent task is how to deal with the pressure from BlackRock...

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 Maiguo. BlackRock cannot force major companies to come up with ESG (environmental, social and corporate governance, in other words, correct diversification) with just one email like it did in Maiguo.

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.

"So how do you plan to solve this problem?" After hearing Zhou Shouzi's telephone report, Fang Yu did not express his opinion, but asked Zhou Shouzi for his opinion first.

Zhou Shuzi paused and said, "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 communicate with you before making a decision."

Before Fang Yu could continue to ask, 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 cash flow to return to positive. But as you know, Ysou has not yet generated any formal revenue, and our cash flow, including loans, is only 25 billion, which is only enough for the next 12 months."

“Before that, our roadmap was to quickly land in Beimai and achieve rapid revenue growth through advertising and enterprise services.”

"But after the Alcatraz incident yesterday, the global economy began to face huge uncertainties. If we choose a conservative approach, we can take this opportunity to communicate with BlackRock to come up with a good financing plan, such as a low-interest or interest-free medium- and long-term loan of 20 billion Malaysian dollars."

"The benefit is that we can obtain a very safe cash flow, ensuring our goal of returning to positive cash flow in three years. With sufficient cash flow, Ysou can also focus more on long-term benefits, and its overseas deployment will be much calmer and more certain."

Fang Yu didn't comment: "What about the second plan? How do you plan to deal with it?"

"The second solution is very simple, which is to not deal with it." Zhou Shuzi said calmly.

Fang Yu was really 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 YSearch's popularity in the entire English-speaking area and accelerate the expansion of local users."

"BlackRock is currently exerting pressure through relevant parties of Da Zhou and threatening the subsequent financing of Youzi Technology and Ysou by using the identity of an investor of Youzi Technology."

"The popularity of Alcatraz and the Xianzheng crisis saved Ysou at least six months of time to gain popularity in Beimai. Even if it is a net investment, it means more than one billion yuan."

"If we consider the impact of Google's disgraceful role on YSearch and the revenue growth from saving six months of time, the difference could be more than a billion dollars."

“I don’t think the relationships BlackRock 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 comparative cost advantage brought by technological leadership, YSearch's need for financing is far less urgent than that of Google in its early days. According to our previous calculations, the annual fixed cost expenditure of 1.7 million yuan is enough to cover the current resource investment of Google in search."

"But this does not mean that our cash flow is sufficient, especially when the expansion speed of North Mai is much faster than expected."

"I just talked to the finance and operation and maintenance department. According to our calculations, if we want to take this opportunity to rapidly expand Ysou's market share in Beimai, we will have to spend at least 2 million more every month."

"That is to say, the current cash flow may not be able to support more than half a year if it is not replenished."

"If it is other startups, fast expansion is of course a good thing. After raising the valuation, they can obtain cash flow support through equity financing plans."

"But Ysou has already decided not to go public, which has blocked a considerable number of investors and increased the uncertainty of financing."

"Half a year later, if our revenue is not as good as expected, Ysou may face the risk of cash flow interruption."

"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 YSearch."

"Because it involves the future route, I have to 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 he made the right choice as the CEO of YSearch. He was really smart. He understood that Zhou Shuzi's call seemed to be asking for money, but in fact it was a test.

To test how much Youzi Technology values ​​Ysou, and to what extent the plans for Ysou that were previously told to him were misleading.

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 tier in Fang Yu's mind, and he has not planned Ysou as a 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 it pays.

The worst case scenario is that Fang Yu chooses the second option, but does not provide any resources, leaving Ysou to figure out a solution 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 it is just a matter of trying to do it with all their might. If it succeeds, that's great, but if it fails, 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, let’s not talk about how much resources can be given. Just look at who is responsible for this part of the business to understand its true importance.

If the person in charge of this part of the business is originally a powerful figure in the group or a confidant of the boss, it means that the group may really attach great importance to this matter.

And 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 manager, it means that the importance of this business is not that great.

It is often said that professional managers cheat their bosses, but in fact, it is more common for bosses to cheat professional managers.

After all, professional managers can only be considered larger cattle and horses.

At most, it can be considered a "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 or MBA classes, business forums and the like, and the remaining 49% are made up by the bosses on the spur of the moment.

If a professional manager really believed the boss's promise, gave up the original core business, and ran to the department ambitiously to start a business, it would be fine if nothing went wrong. But when he encountered some problems and asked the boss to redeem the resources, he found out that the department was shit.

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 certainly looks 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 that.

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 know that Ysou's strategic goal is to use all means to gain a higher market share in the world as soon as possible."

"Since you think the second plan is more beneficial to Ysou's overseas expansion, there is no reason for me not to support it."

"As for the cash flow problem you mentioned, that's exactly what I want to discuss with you in the next two days: I plan to start YSearch's first round of financing by August at the latest, and raise 8 billion dollars by selling % of the equity."

"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 came from a venture capitalist 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 this 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, there is no way any investor could be so stupid!
This valuation is obviously too high. A reasonable valuation now should be between 5 million and 10 billion dollars. Even billion is a bit high.

After reaping the dividends from "Devil's Island" this time, if there is no risk of backlash, the valuation may reach 2 billion, and 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 determined 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 Yuzu Technology. That was because in the incident where Qianxun stole the large orange model, they exchanged interests with Yuzu Technology in order to prevent Yuzu Technology from pursuing them relentlessly.

In addition, Youzi Technology is a leader in AI, and the Orange large model has been successfully put into commercial use. 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 leading technology and the dividends of "Devil's Island"?
Are we overestimating capitalism?
Or did you dream that there was thunder in the sky and the computer rooms of Google and Qianxun were struck down?
For a moment, Zhou Shuzi even doubted the correctness of his joining Ysou.

"I know your concerns, but you still need to prepare a financing plan. If Ysou does not start financing in August, Youzi Technology will continue to inject sufficient liquidity into Ysou."

"In short, market share! Market share! Market share!"

"YSearch's milestone roadmap has not changed. Market share is the 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 meow involuntarily because of the pinch.

Zhou Shuzi was listening with great confidence and excitement when he suddenly heard some sound on the other end of the phone.

"Oh, it's nothing. I'm discussing a few investment projects to see if there's any opportunity to buy shares."

Fang Yu explained it seriously, and then rubbed Black Widow's skin to reduce swelling and relieve pain.

(Please give me double the monthly ticket!!!)

Please give me a guaranteed monthly ticket!!!
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(End of this chapter)