In Alphabet, Google's parent company, latest third-quarter earnings report, CEO Sundar Pichai told investors that the company's investments in artificial intelligence (AI) are yielding good returns, which led to a more than 5% surge in stock prices during extended trading. Pichai emphasized that the strong demand for AI has driven outstanding performances in the company's search and cloud computing businesses.
The report mentioned that Google Cloud's revenue surged 35% year-over-year in the third quarter, reaching $11.4 billion, mainly benefiting from the growth of AI infrastructure and generative AI solutions. Pichai also stated that Google's strategic investments in AI technology give it a unique leading edge in this emerging field. He pointed out, "For all these AI capabilities, this is just the beginning. You will see a rapid pace of innovation and progress."
Beyond cloud services, Pichai noted that the number of users leveraging AI summary features in Google searches is also increasing. Moreover, Google Lens handles 20 billion visual searches per month, indicating widespread user recognition of AI tools. Philipp Schindler, Google's Chief Business Officer, said that new AI-driven features have made the search experience more useful, especially popular among younger users.
After the earnings release, Chief Financial Officer Ruth Porat mentioned that the progress in AI is expected to translate into revenue in the short term. Alphabet's capital expenditure in the third quarter reached $13 billion, and Porat said that similar spending is expected in the fourth quarter, with plans to further increase investments in AI by 2025.
Porat added, "This field requires investment, and our actions are based on customer demand." Google's continuous investment and innovation in the AI field not only enhance the performance of its core businesses but also lay a solid foundation for future growth.
Key Points:
🌟 Google CEO says AI investments are paying off, driving stock prices up by over 5%.
🚀 Google Cloud revenue grew 35% year-over-year in the third quarter, reaching $11.4 billion.
💡 Expects AI progress to bring revenue in the short term, with plans to increase investments in the future.
