{"id":285639,"date":"2024-07-24T17:34:34","date_gmt":"2024-07-24T17:34:34","guid":{"rendered":"https:\/\/www.techopedia.com\/?post_type=news&p=285639"},"modified":"2024-07-24T17:34:34","modified_gmt":"2024-07-24T17:34:34","slug":"alphabets-generative-ai-investments-pay-off-experts-on-robust-q2","status":"publish","type":"news","link":"https:\/\/www.techopedia.com\/news\/alphabets-generative-ai-investments-pay-off-experts-on-robust-q2","title":{"rendered":"Alphabet\u2019s Generative AI Investments Pay Off: Experts on Robust Q2"},"content":{"rendered":"

Alphabet’s<\/b><\/a> earnings came in better than expected, as operating profit topped $1 billion for the first time. Let\u2019s look at the detailed breakdown of the results with the experts.<\/b><\/p>\n

Alphabet\u2019s Q2: Details<\/span><\/h2>\n

Google\u2019s parent company Alphabet (GOOG) <\/span>reported<\/span><\/a> earnings per share of $1.89 against a revenue of $84 billion. The expectation stood at $1.85 versus revenue of $84.3 billion. The earnings per share increased by 31% while the revenue jumped by 14%.<\/span><\/p>\n

The company\u2019s advertising revenue rose by 11% to $64.6 billion vs. $58.1 billion last year. The income for the quarter ending June 30th witnessed an increase of 28.6% to an impressive $23.6 billion. The YouTube division also added $8.67 billion to its revenue due to ad sales, which was lower than the estimated $8.95 billion.\u00a0<\/span><\/p>\n

\"Alphabet<\/p>\n

One of the most important figures is the revenue through cloud computing services, which came in at $10.35 billion. This represents an increase of 28.8%. <\/span>Google Cloud<\/span><\/a> provided a profit of $1.17 billion, more than the $982 million expected by the analysts.<\/span><\/p>\n

Alphabet\u2019s Plans for Generative AI<\/span><\/h2>\n

Alphabet has spent around $2.2 billion on AI, especially through DeepMind and Google Research organizations. It is up from $1.1 billion in Q2 2023. For instance, the company <\/span>has recently added<\/span><\/a> generative AI features to its Gmail services.<\/span><\/p>\n

Alphabet is <\/span>expanding its presence<\/span><\/a> in the generative AI field by introducing NotebookLM, an AI-powered note-taking app, and YouTube Music <\/span>Gemini<\/span><\/a> Extension.<\/span><\/p>\n

As the AI market is expected to reach $356 billion by 2030, such efforts stand to profit the company in the long run.\u00a0<\/span><\/p>\n

Alphabet and Self-Driving Cars<\/span><\/h2>\n

Recently, the CFO of Alphabet, Ruth Porat, shared the plan to invest $5 billion in a self-driving car unit <\/span>Waymo<\/span><\/a>. The company\u2019s Other Bets unit, which includes Waymo, has registered $365 million in quarterly revenues, which came in at $285 million last year.<\/span><\/p>\n

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Life in San Francisco today: in a Waymo behind another Waymo. Welcome to the future! Our city is leading the AI revolution, with innovation driving us forward every day. \ud83d\ude80\ud83e\udd16 Embrace the SF AI boom loop! #FutureForward<\/a> #SFAI<\/a> pic.twitter.com\/iJceFcO9tT<\/a><\/p>\n

— Marc Benioff (@Benioff) July 17, 2024<\/a><\/p><\/blockquote>\n