On one end we have Coase's theory of the firm, but then we have the realities of the modern tech megacap company, which is 20+ companies in a trench coat, and where it's clear the alignment between the best interest of a middle manager, the company as a whole, and of the consumer have absolutely nothing to do with each other. But pointing at one working thing in an investor call seems quite valuable, so we aren't seeing investors actually demanding to spin off companies with minimal actual synergy.

So we end up with companies acting in ways that don't help themselves or the consumer, but which have no reasonable mechanisms to correct any of this. So we end up with the two best entrants in the AI space being independent companies, all while we know that, in case of significant cuts, it's the companies that are attached to other huge, unrelated sources of revenue that will have easier time surviving. Gemini can mess up all they want as long as management still has Ads and youtube sitting there subsidizing them.