Google is developing a range of AI-driven products and heavily relies on AI in the process.
CEO Sundar Pichai revealed during the company’s Q3 2024 earnings call that “over a quarter of all new code at Google is AI-generated, then reviewed and approved by engineers.” This milestone reflects the significant role AI now plays within the company.
AI also contributes to Google’s revenue growth. Alphabet posted $88.3 billion in quarterly revenue, with $76.5 billion from Google Services (which includes Search), a 13% increase from last year.
Google Cloud, encompassing AI infrastructure services for external companies, brought in $11.4 billion, a 35% year-over-year rise.
Operating income showed impressive growth, with Google Services reaching $30.9 billion, an increase from last year’s $23.9 billion, and Google Cloud climbing significantly to $1.95 billion from just $270 million a year ago.
These figures suggest that, despite some public perception of Google’s declining reliability, the company remains financially robust.
AI is central to Google’s strategy, seen in releases like custom AI chatbots powered by Gemini (known as “Gems”), automated AI note-taking for Google Meet, and various generative AI tools designed for YouTube creators. Additionally, the highly praised Pixel 9 smartphone lineup comes equipped with numerous AI-driven features.
CEO Sundar Pichai highlighted Google’s advancements, noting that “our new AI features in Search are expanding both what people can search for and how they search.”
He added, “In Cloud, our AI solutions are boosting product adoption among existing customers, drawing in new clients, and securing larger contracts. And for the first time, YouTube’s combined ads and subscription revenue exceeded $50 billion over the last four quarters.”
Despite these achievements, Google faces challenges ahead. In August, a court ruled that the company holds a monopoly in the search and advertising markets, a case led by the U.S. Department of Justice.
Now in the remedies phase, this case could potentially lead to a breakup of Google, though a final decision is still pending.
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