Google is one of the companies investing the most in generative artificial intelligence. And today, these investments are already bearing fruit, since its very good results for the third quarter of 2024 are partly attributed to the growth of the cloud activity, which was boosted by offers linked to artificial intelligence. “The dynamic 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,” declared Sundar Pichai, the CEO of Google and Alphabet (its parent company).
Google’s third-quarter revenue topped $88 billion, growing 15% year-over-year. Net income exceeded $26 billion, compared to $19.689 billion for the same period in 2023. And if advertising remains Google’s main source of revenue, the third quarter was especially marked by a strong increase in revenue from Google Cloud, which largely benefited from the firm’s investments in the field of 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, representing 35% year-over-year growth, while operating margin was 17%. “I am very pleased with our growth. This business is seeing real momentum and overall opportunities are increasing as customers adopt Generic AI”rejoices Sundar Pichai.
How is Google Cloud benefiting from the AI revolution?
In a blog post, the Google boss gives some details on these third quarter results. And regarding the cloud, it gave some examples of uses of Google services by companies. According to Sundar Pichai, thanks to its infrastructure, the Mountain View firm is able to offer offers that allow companies that rely on AI to gain efficiency and reduce their costs. Alternatively, Google also offers an AI platform called Vertex that allows companies to create products based on its basic AI models. This is the case of the social network Snapchat, whose My AI assistant relies in part on Gemini APIs.
Alternatively, it is also possible for Google Cloud customers to combine the power of generative AI with the data mining platform. Other customers use Google’s cybersecurity solutions, which are also AI-powered. And recently, the firm developed a new product called “Customer Engagement Suite” which 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 offers that combine the cloud and artificial intelligence and which 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. 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 using generative AI. And according to Sundar Pichai’s post, this experience is now being deployed in more than 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 posted 35% growth in revenue.
- Google Cloud offers its infrastructures and models to companies wishing to rely on generative AI
