I think what may save Google from an Innovator's Dilemma extinction is that none of the AI would-be Google killers (OpenAI etc.) have figured out how to achieve any degree of lock-in. We're in a phase right now where everybody gets excited by the latest model and the switching cost is next to zero. This is very different from the dynamics of, say, Intel missing the boat on mobile CPUs.
I've been wondering for some time what sustainable advantage will end up looking like in AI. The only obvious thing is that whoever invents an AI that can remember who you are and every conversation it's had with you -- that will be a sticky product.
Who ever gets AI to be able to search the whole corpus of human knowledge. I'm not just talking about web pages, I'm talking every book, every scientific paper, every news paper, every piece of text stored somewhere.
I've build RAG systems that index tokens in the 1e12 range and the main thing stopping us from having a super search that will make google look like the library card catalogue is the copyright system.
A country that ignores that and builds the first XXX billion parameter encoder only model will do for knowledge work what the high pressure steam engine did for muscle work.