AI is many things, and one of those things is EXPENSIVE! Companies are spending billions of dollars training AI models and launching products. As much money Google is spending on AI, the technology apparently seems to be paying off for the company.
Sundar Pichai, Google/Alphabet CEO, just released a blog post regarding its latest earnings call. It was able to rake in some rather tasty revenue this year, with a 15% YoY increase for the third quarter. All in all, the company brought in $88.27 billion this quarter.
AI seems to be paying off for Google
At this point, making AI profitable is a far-off pipe dream, but that’s not stopping companies from trying. Google is one of the companies spending the most money training its models, and the revenue that it’s making from subscriptions just isn’t offsetting the costs.
Regardless, Pichai seems to be pretty optimistic about where Google’s AI is taking the company. In his announcement, he spoke about some of the things that the company has been doing to cut costs and energy usage. This includes making several; software and hardware changes. Along with that, he touted the first agreement to use nuclear energy from modular reactors.
Pichai also spoke about how some of its most popular services are using Gemini models. All seven of its products with more than 2 billion users employ Gemini models. This was also a soft announcement that Google Maps has just surpassed 2 billion users.
One thing to notice is that Pichai didn’t mention that Gemini has turned a profit. He just mentioned that the company’s investments in AI are paying off. People are using Google’s products more, and this could be because of the advanced AI being squeezed into them. This growth in usage could make it easier for Google to make its AI profitable.
In any case, it seems that Google is optimistic about the future of its AI (and its wallet).
