On December 6, 2013, several important things happened on the same day.
The most important thing was that Google sent their proposed profit-sharing contract regarding Meng Fanqi's AI technology. The intricacies involved in how the profits should be divided were unprecedented.
Previously, Meng Fanqi had only signed a service contract with Baidu for a single technology, which was just a real-time image detection algorithm. There were already many things that needed to be agreed upon.
But now, Meng Fanqi needed to negotiate with Google on how various types of technology should be divided.
It was well known that some technologies were profitable while others were not. Some seemed to be losing money but were actually making a profit, while others seemed to be making a profit but were actually losing money.
Autonomous driving cars and humanoid robots, which were revolutionary products, would undoubtedly bring in huge profits if they could be commercialized. However, this was still far away and was in the stage of pure investment.
For technologies that could be monetized immediately, as well as those that were not easily monetized but were important, and those that were purely invested in research and development, the division of profits was complex.
Google's contract in this regard was very detailed. Although Meng Fanqi's currently released technologies were purely in the field of image processing, many other types of technologies were still included in this contract.
It was very rigorous and meticulous.
For example, for Google, what technology could generate the fastest and highest income?
Undoubtedly, it was advertising revenue. Google's advertising revenue in a quarter usually amounted to around 20 billion US dollars, accounting for more than 80% of its total revenue.
During good times, the annual cumulative revenue reached nearly 100 billion US dollars, which was the foundation for supporting all of Google's projects.
Currently, the most valuable way for Google to make money was to predict users' click choices more accurately.
According to their internal statistics, even a 0.1% improvement in accuracy would generate hundreds of millions of dollars in additional revenue.
If Meng Fanqi made a breakthrough in recommendation algorithms, it could be directly tested and deployed if the results were good.
In this case, the division of profits was very simple. The more income it brought to the company, the more it would be shared proportionally, which was easy to understand.
For outsiders, it might be difficult to understand how the additional income generated after technological improvement was calculated.
In fact, the most significant source of income for Google over the years was related to recommendation algorithms and the increase in users' click intentions and consumption intentions.
Therefore, the algorithms and statistics related to this aspect were extremely advanced internally, and the predictions for the next quarter's advertising revenue were quite accurate.
Meng Fanqi's experience mainly focused on image algorithms, and he had some understanding of natural language processing and large-scale models, but he didn't know much about recommendation algorithms.
But fortunately, it was still early, and although Meng Fanqi had paid little attention to recommendation and advertising algorithms since graduating, he still had some impressions of the classic algorithms from around 2018-2019.
He had carefully read some papers produced by Google, Facebook, and Ali Penguin, among other major companies.
"If I hadn't read the contract, I would have forgotten that Google is actually a hidden advertising company...." Meng Fanqi muttered to himself. Everyone thought that Google was a technology giant, but its main revenue came from advertising, and the rest accounted for less than 20%.
"If that's the case, my top priority for the next few months should actually be recommendation and advertising algorithms." Meng Fanqi pondered for a moment. Google offered a high profit-sharing percentage for this aspect, reaching 20-30% within one or two years, but it would gradually dilute in the future, with only the first two years receiving more.
If Meng Fanqi now used Google's classic recommendation algorithm from 2015-2016, he personally estimated that it would increase Google's advertising revenue by 5-10%, close to tens of billions of dollars.
A 20-30% share would be over 2 billion US dollars, and within two years, it would be close to 5 billion US dollars. This would be the most terrifying income he could get at this stage.
In reality, Google also used some methods to limit Meng Fanqi's profit-sharing, mainly through a partnership model. If there were Google employees or other personnel involved in the technological achievements, Meng Fanqi's contribution would be diluted.
For example, if the recommendation algorithm was completed by him and four Google employees together, even if he was in a leading position, his contribution would only account for 30-35%.
And the other people had no profit-sharing contracts and no rights to share the profits, so the 2 billion share would directly become around 500-600 million US dollars.
For technologies like this, it was often possible to have a team of more than a dozen or even twenty people, so when it came to Meng Fanqi, there might only be a few tens of millions of dollars left, which was a good calculation for capitalists.
Unfortunately, Google never thought that most of the time, Meng Fanqi didn't need any assistance from collaborators.
For breakthroughs in cost-saving technologies, the profit-sharing method was similar, with a 30% share for one year.
Mature technology iterations in tech companies happened quickly, and after a long time, it would be difficult to calculate the effectiveness of the technology. Therefore, the profit-sharing period given was generally short.
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But fortunately, the percentage was not low, and it came quickly, so Meng Fanqi was quite satisfied.
As for technologies that couldn't be monetized at the moment, they were divided in the form of long-term profit-sharing, with a slightly lower percentage, but it also depended on the proportion of the technology's contribution to profitability.
Overall, Meng Fanqi was already quite satisfied because he didn't have to worry about the actions Google took regarding him.
For example, diluting the contribution ratio of the technology by using collaborators.
Or the long-term profit-sharing for technologies that couldn't be monetized. If the technology you developed didn't make money in the end, you wouldn't get a single cent.
But Meng Fanqi happened to know which technologies had the best response and made the most money.
It could be said that he had a firm grasp on everything.That afternoon, with Han Ci's help, Meng Fanqi finally finished reading the current contract twice.
According to this profit-sharing ratio, Meng Fanqi was confident that he could directly rake in at least two billion US dollars from Google in 2014.
This was far more than the twenty million US dollars signing fee that Google had originally offered for two years.
The charm of a gambling-style profit-sharing contract was just that, and even a tech giant like Google couldn't beat a reborn person in gambling.
Unfortunately, Meng Fanqi was still not satisfied. If he had seen this contract when they first met the day before yesterday, he would have signed it without a second thought.
But today, Meng Fanqi learned that Baidu and Yan Jing's Changping District had already established a cooperative relationship. This meant that Baidu's technology release conference later today would elevate its value and status to another level.
"Someone from Google has just come to urge us, I wonder what you're thinking?"
After receiving the contract, Meng Fanqi needed a quiet room to carefully read these terms, and the whole process took quite a while.
Someone from Google had come to inquire about the situation, and Tang Huang and Liu Xu sent the news to Han Ci, who was assisting Meng Fanqi in reading.
Han Ci didn't mention this until Meng Fanqi had finished reading the entire contract and put it aside.
"Let them wait a bit longer, there's a good show tonight."