Recently, Alphabet, the parent company of Google, released its financial results for the third quarter of the 2024 fiscal year, which were quite encouraging. The company's total revenue reached $88.3 billion, marking a 15% year-over-year increase. Among this, Google's services generated $76.5 billion, a 13% rise; while Google Cloud's revenue surged by 35%, hitting $11.4 billion.
In this financial report, the contribution of artificial intelligence was particularly notable. Sundar Pichai, Google's CEO, stated that the company's commitment to innovation and long-term investment in AI is continuously bringing success to both the company and its customers. He noted that Google, with its unique full-stack AI innovation approach, is steadily leading the trend of the AI era, and this model has already begun to operate on a large scale.
Over the past six months, the call volume for the Gemini API has nearly increased by 14 times. Pichai mentioned that Snapchat, when expanding its "My AI" chatbot feature, chose Gemini's multimodal capabilities, resulting in a 2.5-fold increase in user engagement in the United States.
Interestingly, Google has also seen significant reductions in operational costs after introducing the AI overview test. Pichai revealed that since the test, the cost of machine queries has been reduced by over 90%. At the same time, they have expanded the scale of the Gemini model to double its size.
Pichai also emphasized that the Gemini smart assistant in Google Workspace has received high praise, with 75% of daily users reporting a noticeable improvement in work quality.
Additionally, Google's AI technology portfolio has helped attract new customers and achieve a 30% increase in product adoption among existing customers. For instance, LG's AI team, by combining Google's TPU and GPU, has reduced the inference processing time of its multimodal model by 50% and operational costs by 72%.
Customers, leveraging the integration of the AI platform with BigQuery, can analyze multimodal data from any storage location, enjoying ultra-low latency access to Gemini.
Although AI has driven growth across various departments, Google's traditional search and advertising businesses continue to perform strongly. Revenue from search and other businesses increased by 11%, reaching $44.03 billion, while YouTube ad sales also saw significant growth, with an increase of 12.4%, totaling $7.95 billion.
This further solidifies Google's dominant position in the search and advertising markets, despite challenges from competitors like OpenAI and Perplexity. Meanwhile, Meta is quietly developing its own AI search engine.
Key Points:
🌟 Revenue Surge: Google's Q3 financial report shows revenue at $88.3 billion, a 15% increase year-over-year.
🚀 Rapid Growth of Gemini API: In six months, the call volume for the Gemini API increased by 14 times, with significant user engagement improvements.
💡 Strong Traditional Business: Search and advertising businesses continue to shine, with YouTube ad sales growing by 12.4% year-over-year.