Google is building a bunch of AI products, and it’s utilizing AI rather a spot arsenic portion of building those products, too. “More than a 4th of each caller codification astatine Google is generated by AI, past reviewed and accepted by engineers,” CEO Sundar Pichai said on the company’s 3rd 4th 2024 net call. It’s a large milestone that marks conscionable really important AI is to the company.
AI is helping Google make money arsenic well. Alphabet reported $88.3 cardinal successful gross for the quarter, pinch Google Services (which includes Search) gross of $76.5 billion, up 13 percent year-over-year, and Google Cloud (which includes its AI infrastructure products for different companies) gross of $11.4 billion, up 35 percent year-over-year.
Operating incomes were besides strong. Google Services deed $30.9 billion, up from $23.9 cardinal past year, and Google Cloud deed $1.95 billion, importantly up from past year’s $270 million.
The results bespeak that, while galore group consciousness Google isn’t arsenic reliable arsenic it erstwhile was, the institution continues to run a very beardown business. AI is simply a immense attraction crossed Google, pinch the merchandise of features for illustration custom AI chatbots powered by Gemini (called “Gems”), automatic AI note-taking successful Google Meet, and a bunch of generative AI devices to thief YouTube creators. Google’s well-reviewed Pixel 9 lineup of smartphones were also packed pinch AI tools.
“In Search, our caller AI features are expanding what group tin hunt for and really they hunt for it,” CEO Sundar Pichai says successful a statement. “In Cloud, our AI solutions are helping thrust deeper merchandise take pinch existing customers, pull caller customers and triumph larger deals. And YouTube’s full ads and subscription revenues surpassed $50 cardinal complete the past 4 quarters for the first time.”
Google is facing a perchance reliable roadworthy ahead, however, pursuing the August ruling that the institution is a monopolist successful the hunt and advertizing markets. That case, brought by the US Department of Justice, is now successful its remedies phase, and while there’s still a ways to go for the particulate to settle, a Google breakup is connected the table.