How a Trillion Dollar Company was Created in a Dorm

Students to Billion Dollar Company; How Google did it

The Start

The story of Google begins at Stanford University in 1995. Larry Page was considering Stanford for graduate school when he was assigned a tour guide: Sergey Brin. Although they initially clashed on several topics, the two soon found common intellectual ground. A year later, they teamed up to create a search engine that would change the internet forever.

Working from their dorm rooms, they developed a system to rank web pages based on how many other pages linked to them. This idea became the foundation of their algorithm, which they called PageRank. Their first search engine prototype was named Backrub, due to its focus on analyzing backlinks across the web. In 1997, they renamed it Google, a play on the word “googol”—the mathematical term for 10¹⁰⁰—symbolizing their mission to organize a seemingly infinite amount of information online. The name “Google” actually came about due to a spelling error when they tried to register the domain name Googol, but it was misspelled, and eventually it stuck.

Their creation quickly caught the attention of both academics and Silicon Valley investors. In 1998, Andy Bechtolsheim, co-founder of Sun Microsystems, famously wrote Larry and Sergey a check for $100,000 after a quick demo, effectively founding Google Inc. With the funds, they moved out of their dorms and into their first official office: the garage of a friend, Susan Wojcicki, in Menlo Park, California. (Susan would later become CEO of YouTube.)

As Google's popularity skyrocketed, the company moved to a larger headquarters in Mountain View, California—a location now known as the Googleplex. In 2000, Google launched AdWords, its online advertising platform, allowing businesses to place targeted, text-based ads next to search results. That same year, Google became the default search engine for AOL, helping it reach millions more users and further cementing its place as a leader in internet search.

Products/Growth

From there, Google continued to expand remarkably, both in its user base and the range of products it offered. What began as a search engine quickly became the foundation for a suite of tools designed to organize and improve the web experience. In 2004, Google launched Gmail, offering an unheard-of 1 GB of free storage and powerful search features. Soon after came Google Maps (2005), which changed how people navigate the world, and Google Docs (2006), which brought real-time document collaboration to the cloud.

Following these successes, Google introduced Google Calendar, allowing users to manage schedules and appointments seamlessly online. In 2008, it launched Google Chrome, a fast, clean, and secure web browser that quickly rose to dominate the market. Around the same time, Google also released Google Drive, a cloud storage solution that integrated with Docs, Sheets, and Slides, making it easy to store and share files from any device.

The company didn't stop there—Google Photos debuted with unlimited photo storage (initially), smart search features, and automatic backup, changing how users store and access their memories. Google Translate evolved into a powerful language tool, helping break down communication barriers worldwide by supporting over 100 languages.

For communication, Google introduced Google Meet and Google Chat, offering video conferencing and team messaging for both individuals and organizations. On the education front, Google Classroom enabled teachers and students to collaborate in digital learning environments, which became especially vital during the global shift to remote learning.

And with the rise of voice technology, Google developed Google Assistant, an AI-powered virtual assistant that integrates with smartphones, smart displays, and home devices. Combined with Nest products like smart speakers, thermostats, and security cameras, Google has firmly planted itself in the smart home space.

All these products, built on the foundation of cloud computing and artificial intelligence, reflect Google’s ongoing mission to make information more accessible, tools more powerful, and daily tasks more effortless for users around the globe.

Software to Hardware

Up until the mid-2010s, Google was primarily known as a software and internet services company. However, in 2014, the company took a major step into the hardware space by acquiring Nest Labs for $3.2 billion. Nest's flagship product—the Nest Learning Thermostat—focused on creating a smarter, more energy-efficient home by learning user behavior and adjusting temperatures automatically. Over time, Google expanded the Nest brand to include a broader range of smart home devices, such as smart speakers, security cameras, video doorbells, and smoke detectors, all designed to integrate seamlessly with Google Assistant for voice-activated control and automation.

Google has also been actively exploring augmented reality (AR). In 2013, it launched the experimental Google Glass, an early attempt at smart glasses aimed mostly at developers and enterprise users. Although Google Glass faced criticism over privacy concerns and limited functionality, it laid the groundwork for more advanced AR initiatives. In recent years, Google has shifted focus toward next-generation AR glasses, with reported features including real-time translation, navigation overlays, and context-aware information, potentially competing with similar efforts from Apple and Meta.

In 2016, Google introduced the Pixel smartphone, the first device fully designed and branded by Google. It marked a departure from the previous Nexus series (which was built in collaboration with hardware partners). The Pixel smartphone emphasizes premium hardware, best-in-class cameras powered by AI, and a pure, bloat-free Android experience. The Pixel line has since evolved into a broader ecosystem of devices, including Pixel Buds, Pixel Tablets, and Pixel Fold.

In the wearables space, Google launched the Pixel Watch in 2022, integrating it tightly with Fitbit’s health-tracking ecosystem following Google's acquisition of Fitbit in 2021 for $2.1 billion. These devices focus on features like activity tracking, heart rate monitoring, sleep analysis, and smart notifications, blending Google's software capabilities with Fitbit's hardware expertise.

Future of Google

Alphabet, Google's parent company, has broadened its focus far beyond search and advertising, investing heavily in next-generation technologies. One of its most prominent subsidiaries is Waymo, which leads Alphabet’s efforts in autonomous driving. Originally started as Google’s self-driving car project in 2009, Waymo now operates independently, leveraging Alphabet’s vast resources and AI capabilities. Its mission is to revolutionize transportation through autonomous ride-hailing and delivery services. Waymo has already launched limited public services in cities like Phoenix and San Francisco, and continues to test and refine its self-driving technology to ensure safety and scalability.

Google is also making major strides in quantum computing. In 2023, the company introduced its Willow chip, part of its roadmap to building a scalable, fault-tolerant quantum computer. The long-term goal is to solve real-world problems that are currently beyond the reach of classical computers, particularly in fields such as materials science, chemistry, logistics optimization, and cryptography. This builds on Google’s previous breakthrough in 2019, when its quantum processor Sycamore achieved "quantum supremacy" by solving a specific problem faster than the world’s most powerful supercomputer.

In addition to quantum chips, Google is also focused on developing custom AI accelerators. Its proprietary Tensor Processing Units (TPUs) are purpose-built for machine learning workloads and have become a cornerstone of its infrastructure. TPUs are used extensively across Google’s products and services, such as Search, Translate, and Photos, and also power large-scale models like Gemini. They are central to Google Cloud’s AI offerings and represent a key advantage in the race for efficient, high-performance AI computation.

Speaking of cloud services, Google Cloud is a major pillar of Alphabet’s business strategy. It provides a full suite of scalable tools for computing, data storage, machine learning, analytics, and security. Google Cloud supports enterprise customers across industries, enabling businesses to leverage AI and cloud infrastructure for digital transformation. In the highly competitive cloud market, Google Cloud stands alongside major players such as Amazon Web Services (AWS), Microsoft Azure, Oracle Cloud, and Alibaba Cloud.

Acquisitions

YouTube (2006) – Acquired for $1.65 billion. World's largest video-sharing platform; Key to Google’s media and ad revenue growth. Today, it is estimated to be worth around $500 billion

Android Inc. (2005) – Price undisclosed. Foundation for the Android OS; Now, the most widely used mobile operating system globally

DoubleClick (2007) – Acquired for $3.1 billion. Strengthened Google’s online advertising capabilities; Integrated into Google Ads and Display Network

Nest Labs (2014) – Acquired for $3.2 billion. Entry into smart home technology; Offers thermostats, cameras, doorbells, and more

Waze (2013) – Acquired for $1.1 billion. Community-driven GPS and traffic app; Integrated into Google Maps for real-time traffic data

Fitbit (2021) – Acquired for $2.1 billion. Expands Google’s presence in health tech and wearables; Complements Pixel hardware and health data initiatives

DeepMind (2014) – Price estimated at around $500 million. AI research lab known for AlphaGo and breakthroughs in machine learning; Focuses on healthcare, energy, and foundational AI models

HTC’s Pixel Division (2017) – Acquired for $1.1 billion. Gave Google control over Pixel smartphone development; Boosted in-house hardware capabilities

Overview/Summary

What began as a simple idea on a college campus evolved into one of the most influential tech companies in the world. Google’s story has the feel of a classic underdog tale: two students building a search engine from their dorm room that would go on to redefine how the internet works. Once they mastered search and became the dominant force in that space, they turned their attention to improving the broader user experience, launching tools like Gmail, Google Maps, Google Docs, and other applications that billions now rely on daily.

At the same time, Google smartly expanded through acquisitions, growing companies like YouTube, Android, and Nest into industry leaders under its umbrella. This combination of internal innovation and external growth allowed Google to move far beyond its search engine roots.

Today, under the umbrella of Alphabet Inc., the company is pushing the boundaries of technology in nearly every direction: autonomous vehicles with Waymo, custom AI chips with its TPU and quantum initiatives, Pixel smartphones, smart glasses, and more.

One consistent pattern I’ve noticed through writing about companies like Google is this: they tend to perfect one thing first, and once they’ve built dominance in that area, they expand. But they don’t expand randomly—they scale by leveraging their strengths (like AI, data, and infrastructure) to enter new markets where those capabilities give them a competitive edge.

Please leave a comment on what you thought of the summary and how I can improve on it for future reference!

Disclaimer: There could be errors in this post/email. I try my best to minimize errors, but I know I’m not perfect, and the internet is not always accurate. This post is not financial advice.