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Google is among the companies investing the most in generative AI. And today, those investments are already paying off, with its strong third-quarter 2024 results attributed in part to growth in its cloud business, which was driven by AI-related offerings. “The momentum within the company is extraordinary. Our commitment to innovation and our long-term focus and investments in AI are paying off as consumers and partners benefit from our AI tools,” said Sundar Pichai, CEO of Google and Alphabet (its parent company).
Google's third-quarter revenue topped $88 billion, up 15% year-over-year. Net income exceeded $26 billion, compared to $19.689 billion in the same period in 2023. And while advertising remains Google's main source of revenue, the third quarter was especially marked by a sharp increase in revenue from Google Cloud, which largely benefited from the firm's investments in AI. Indeed, in addition to offering its Gemini model to the general public, Google also offers various cloud services for companies wishing to exploit AI.
In the third quarter, Google generated revenue of $11.353 billion, which corresponds to a growth of 35% year-on-year, while the operating margin was 17%. “I’m very pleased with our growth. This business is really gaining momentum and the overall opportunity is increasing as customers embrace general purpose AI,” Pichai said.
How Google Cloud is benefiting from the AI revolution?
In a blog post, the Google boss gives some details on these third-quarter results. And regarding the cloud, he gave some examples of uses of Google services by companies. According to Sundar Pichai, thanks to its infrastructures, the Mountain View firm is able to offer offers that allow companies that rely on AI to gain efficiency and reduce their costs. Otherwise, Google also offers an AI platform called Vertex that allows companies to create products from its basic AI models. This is the case of the social network Snapchat, whose My AI assistant is partly based on Gemini APIs.
200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000Otherwise, it is also possible for Google Cloud customers to combine the power of generative AI with the data extraction platform. Other customers use Google's cybersecurity solutions, which are also boosted by AI. And recently, the firm developed a new product called “Customer Engagement Suite” that allows companies to develop a new customer relationship experience based on generative AI. This service already powers a virtual assistant offered by Volkswagen America.
In essence, Google has developed a series of offerings that combine the cloud and artificial intelligence and allow its customers to gain efficiency, or create new innovative experiences.
YouTube achieves a feat and the search engine continues its transition
Otherwise, Google also announced a first for YouTube, whose revenues over the last four quarters have exceeded 50 billion dollars. And the transition to a new experience boosted by generative AI continues for the search engine. As a reminder, Google has developed a Google Search feature that can directly answer questions asked by the user by relying on generative AI. And according to Sundar Pichai's post, this experiment is now being rolled out in over a hundred countries and territories.
- Google has just presented very good quarterly results
- And while advertising remains the main source of revenue, the Cloud business has posted a 35% growth in its revenues
- Google Cloud offers its infrastructures and models to companies that wish to rely on generative AI
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