At the recent Reuters NEXT conference held in New York, Ruth Porat, President and Chief Investment Officer of Google's parent company Alphabet, stated that the company's biggest investment focus is on the application of artificial intelligence (AI) in online search. Once a leader in autonomous vehicles and quantum computing, Google is now turning its attention to its core business—search engines.
In an interview, Porat mentioned that Google is striving to meet user demands by enhancing the search experience through AI technology. For example, Google has begun to incorporate AI-generated summaries into user queries, especially for questions that do not have clear answers. This initiative aims to improve search accuracy and utility under the pressure from competitors like ChatGPT. However, the use of AI also faces challenges, such as the occasional issue of "hallucination," where the information generated by AI is not factual.
Porat pointed out that the evolution of search engines is ongoing, and in addition to search, Google Cloud services are another important investment direction for the company. She mentioned that several innovations in the healthcare sector are also progressing, including the "AlphaFold" system, an AI technology that can predict protein folding structures. Google is applying this technology to drug discovery through its Isomorphic Labs division. Additionally, she noted that AI can help individuals at risk of blindness regain their sight, allowing healthcare professionals to focus more on patient care.
Despite the rising costs of investing in AI technology, Porat stated that this technology represents a "generational opportunity." She revealed that Google expects to invest up to $50 billion in chips, data centers, and other capital expenditures in 2024. However, she emphasized that Google will still focus on the actual effects and returns generated from its investments.
As market interest in Google increases, investors are beginning to reassess the value of its stock, making it increasingly important to seek new investment opportunities, especially in light of the anticipated valuation surge in 2024.
Key Points:
🌟 Google is fully committed to advancing the application of AI in search engines to enhance user experience and respond to competitive pressures.
💡 The company's innovations in healthcare include the "AlphaFold" technology, aimed at leveraging AI to assist in drug discovery and improve patient care.
📈 Google expects to invest $50 billion in relevant technology sectors in 2024, focusing on the actual effects and returns of its investments.