YouTube functions as a video-sharing platform where users upload, view, and share content, powered by a complex system of video storage, distribution, and a powerful algorithm. The platform stores uploaded videos on Google's data centers, compresses them for efficient streaming, and uses machine learning to recommend videos to users based on their watch history and other data. YouTube makes money by showing ads on videos (and sharing revenue with creators) and through optional premium subscriptions, which helps fund the platform's operation.