Google's parent company Alphabet's latest fiscal third quarter financial report released shows that the company's performance is strong, especially the contribution of the artificial intelligence field. According to the financial report, Google's total revenue reached US$88.3 billion, a year-on-year increase of 15%, of which Google's cloud revenue soared by 35%.
Recently, Google's parent company Alphabet released its financial report for the third quarter of fiscal 2024, and the results are exciting. The company's total revenue reached US$88.3 billion, a year-on-year increase of 15%. Among them, Google Service's revenue was US$76.5 billion, an increase of 13%; while Google Cloud's revenue soared by 35% to US$11.4 billion.
In this financial report, artificial intelligence has made a particularly significant contribution, with Google CEO Sundar Pichai saying that the company's commitment to innovation and long-term investment in AI are continuing to bring success to the company and its customers. He pointed out that Google is steadily leading the trend of the AI era with its unique full-stack AI innovative approach, and this model has begun to operate on a large scale.
Gemini API calls have increased nearly 14 times over the past six months. Pichai mentioned that Snapchat chose Gemini's multimodal capability when expanding its "My AI" chatbot functionality, resulting in a 2.5-fold increase in user engagement in the United States.
Interestingly, Google also saw a significant drop in operating costs after launching the AI overview test. Pichai revealed that since the testing, the cost of machine queries has been reduced by more than 90%. At the same time, they also expanded the Gemini model to double the size.
Pichai also emphasized that the Gemini smart assistant in Google's workspace has been well received, and 75% of daily users reported that the quality of work has been significantly improved.
In addition, Google's portfolio of AI technology has helped the company attract new customers and achieved a 30% growth in product adoption among existing customers. For example, the LG AI team has reduced inference processing time of its multimodal model by 50% and operating costs by 72% by combining Google TPU and GPU.
Customers leverage integration with BigQuery’s AI platform to analyze multimodal data from any storage location and enjoy the experience of accessing Gemini with ultra-low latency.
While AI has driven growth across various departments, Google's traditional search and advertising business has remained strong. Revenue from search and other businesses increased by 11% to $44.03 billion, while YouTube advertising sales also saw significant growth, up 12.4% to a total of $7.95 billion.
This further cements Google's dominance in the search and advertising market, despite constant challenges from competitors such as OpenAI and Perplexity. At the same time, Meta is quietly developing its own AI search engine.
Key points:
Revenue increased significantly: Google's Q3 financial report showed that revenue reached US$88.3 billion, a year-on-year increase of 15%.
Gemini API has grown rapidly: In six months, Gemini API calls have increased by 14 times, with user engagement significantly improved.
Traditional businesses remain strong: search and advertising businesses performed well, with YouTube advertising sales rising 12.4% year-on-year.
Google's continuous investment and innovation in the field of AI not only promotes the growth of the company's performance, but also brings a more efficient and intelligent experience to global users.