Alphabet's financial report for the third quarter of fiscal year 2024 shows that the company's total revenue reached US$88.3 billion, a year-on-year increase of 15%, setting a good performance. Revenue from Google Services and Google Cloud also increased by 13% and 35%, respectively, to $76.5 billion and $11.4 billion. The editor of Downcodes will give you an in-depth analysis of this financial report, interpreting the key role artificial intelligence plays in it and Google's strategic layout in the field of AI.
Recently, Alphabet, Google’s parent company, released its financial report for the third quarter of fiscal year 2024, and the results were exciting. The company's total revenue reached US$88.3 billion, a year-on-year increase of 15%. Among them, Google services revenue was US$76.5 billion, an increase of 13%; while Google Cloud revenue soared 35% to US$11.4 billion.
In this financial report, the contribution of artificial intelligence is particularly significant. Google CEO Sundar Pichai said that the company's innovation commitment and long-term investment in AI are constantly bringing success to the company and customers. He pointed out that Google is steadily leading the trend of the AI era with its unique full-stack AI innovation approach, and this model has begun to operate on a large scale.
In the past six months, the number of Gemini API calls has increased almost 14 times. Pichai mentioned that when Snapchat expanded its "My AI" chatbot function, it chose Gemini's multi-modal capabilities, and as a result, user engagement increased by 2.5 times in the United States.
Interestingly, Google’s operating costs also dropped significantly after launching the AI overview test. Pichai revealed that since the test, the cost of machine query has been reduced by more than 90%. At the same time, they also scaled up the Gemini model, making it twice the size.
Pichai also emphasized that the Gemini smart assistant in Google Workspace has been well received, and 75% of daily users reported that the quality of work has been significantly improved.
In addition, Google's AI technology portfolio has also helped the company attract new customers and achieve a 30% increase in product adoption among existing customers. For example, the LG AI team shortened the inference processing time of its multi-modal model by 50% and reduced operating costs by 72% by combining Google TPU and GPU.
Customers can leverage the integration with BigQuery's AI platform to analyze multi-modal data from any storage location and enjoy ultra-low latency access to Gemini.
While AI is driving growth across various sectors, Google's traditional search and advertising businesses remain strong. Revenue from search and other businesses increased by 11% to $44.03 billion, while YouTube ad sales also experienced significant growth, increasing by 12.4% to a total of $7.95 billion.
This further cements Google's dominance in the search and advertising markets, despite continued challenges from rivals such as OpenAI and Perplexity. At the same time, Meta is also quietly developing its own AI search engine.
All in all, Google achieved impressive results in the third quarter with its strategic layout and technical strength in the field of artificial intelligence. In the future, how Google maintains its leading position in the field of AI and how it responds to increasingly fierce competition will deserve continued attention. The editor of Downcodes will continue to bring you the latest technology information.