AI is becoming an integral part of development at Google. More than a quarter of the company’s new code is created using AI, after which it is checked by engineers, said Google CEO Sundar Pichai. The latest financial results highlight the central role AI plays in the corporation’s successes.
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Third-quarter financial results confirm that AI is having a significant impact not only on product development, but also on company revenue growth. Alphabet, Google’s parent company, posted revenue of $88.3 billion, with $76.5 billion coming from its Google Services division, up 13% year-over-year. Google Cloud, which offers AI infrastructure for enterprise clients, earned $11.4 billion, up 35% year-over-year.
The company’s operating income is also showing significant growth. In particular, Google Services brought the company $30.9 billion, which is significantly higher than last year’s $23.9 billion, and Google Cloud’s operating profit reached $1.95 billion compared to $270 million a year earlier. This increase confirms that the introduction of AI has allowed Google to increase the profitability of its existing businesses.
Today, Google is actively promoting AI products, offering innovative solutions for users and corporate clients. These innovations include personalized AI chatbots based on the Gemini AI model (called Gems), automatic AI note-taking in Google Meet, and generative AI tools for content creators on YouTube. The Pixel 9 line of smartphones, which received positive reviews, also acquired AI.
According to Sundar Pichai, new AI functions expand search capabilities and allow you to find information more efficiently. At Google Cloud, AI products help attract new customers and strengthen partnerships with existing ones. For the first time in four quarters, YouTube’s revenue exceeded $50 billion, including advertising and subscription revenue. This highlights how AI helps a company strengthen its position and expand its reach, with a direct impact on its profitability.
However, Google faces serious legal challenges. In August of this year, the company was recognized as a monopolist in the search and advertising markets as part of a lawsuit filed by the US Department of Justice (DOJ). The court proceedings have entered the stage of discussing possible measures, and one of the proposals is the division of the company. These developments could impact Google’s strategic plans, which could force it to reconsider its approach to monetization and how it maintains its market position.