Google's latest third-quarter financial report shows that its investment in the field of artificial intelligence has begun to show results and has significantly driven the company's stock price to rise. CEO Sundar Pichai stressed that strong demand for AI has driven the growth of search and cloud computing businesses, with Google Cloud's revenue growing by 35% year-on-year to $11.4 billion. Financial report data shows that the application of AI-related functions has been widely recognized by users, such as Google Search's AI overview feature and Google Lens' visual search, which have shown huge growth potential. Google plans to continue to increase investment in AI, and expects that the progress of AI will be converted into actual revenue in the short term, laying a solid foundation for the company's future development.
In the latest third-quarter earnings report released by Google's parent company Alphabet, CEO Sundar Pichai told investors that the company's artificial intelligence (AI) investment is making good returns, and the news has caused the stock price to rise more than in extended trading 5%. Pichai stressed that strong demand for AI has driven the company's outstanding performance in its search and cloud computing businesses.
In the financial report, Google Cloud's third-quarter revenue surged 35% year-on-year to US$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. “For all of these AI capabilities, this is just the beginning. You’ll see a quick pace of innovation and progress,” he noted.
In addition to the cloud business, Pichai mentioned that among users who use Google search, the number of people using AI overview is also increasing. Moreover, Google Lens processes 20 billion visual searches per month, which shows users' wide recognition of AI tools. Philip Schindler, the company's chief business officer, said Google's newly launched AI-driven capabilities make the search experience more useful, especially among young users.
Anat Ashkenazi, the company's chief financial officer, mentioned after the financial report that AI progress is expected to be converted into revenue in the short term. Alphabet's capital expenditure reached $13 billion in the third quarter, and Ashkenaz said it expects spending in the fourth quarter to be similar and plans to further increase investment in AI in 2025.
Ashkenaz 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." Have a solid foundation.
Key points:
Google CEO said AI investment results are significant, driving stock prices to rise by more than 5%.
Google Cloud's third-quarter revenue increased by 35% year-on-year to $11.4 billion.
AI progress is expected to bring revenue in the short term and will continue to increase investment in the future.
In short, Google's strategic layout in the field of AI has begun to show results. Its continued investment and innovation will further consolidate its leadership position in the field of artificial intelligence and bring more opportunities for future development. Financial report data also sends positive signals to investors, and the future is worth looking forward to.