Alphabet's third-quarter financial report showed that its artificial intelligence (AI) investment is bringing huge returns, driving the company's stock price up. The editor of Downcodes will interpret the key content of the financial report on AI investment return, analyze how Google uses AI technology to improve its core business, and look forward to its future development strategy.
In the latest third-quarter earnings report of Google parent company Alphabet, CEO Sundar Pichai told investors that the company's artificial intelligence (AI) investments are yielding good returns. This news caused the stock price to rise more than 10% in extended trading. 5%. Pichai emphasized that strong demand for AI drove the company's search and cloud computing businesses to perform well.
As mentioned in the financial report, Google Cloud's third-quarter revenue surged 35% year-on-year to $11.4 billion, mainly benefiting from the growth of AI infrastructure and generative AI solutions. Pichai also said that Google’s layout in AI technology gives it a unique leading edge in this emerging field. "With all of these AI capabilities, this is just the beginning. You're going to see a rapid pace of innovation and advancement," he noted.
In addition to the cloud business, Pichai mentioned that the number of users using Google search to take advantage of the AI overview function is also increasing. Moreover, Google Lens handles 20 billion visual searches every month, which shows users’ widespread recognition of AI tools. Philip Schindler, the company's chief business officer, said that Google's new AI-driven features make the search experience more useful, especially among young users.
The company's chief financial officer Anat Ashkenazi mentioned after the release of the financial report that he expects progress in AI to be converted into revenue in the short term. Alphabet's capital expenditures reached $13 billion in the third quarter, and Ashkenazi said he expects spending to be similar in the fourth quarter and plans to further increase investment in AI in 2025.
Ashkenazi added: "This area requires investment, and our initiatives are based on customer needs." Google's continued investment and innovation in the field of AI not only improves the performance of its core business, but also lays the foundation for future growth. a solid foundation.
All in all, Alphabet's strategic layout in the AI field has begun to bear fruit, and its continued investment and innovation will further consolidate its leading position in the AI field and bring more possibilities for future development. The editor of Downcodes will continue to pay attention to the trends in the AI field and bring more exciting reports to readers.