Google’s parent company, Alphabet, reported a massive $85 billion in revenue for the second quarter. This surge is driven by strong performance in search, cloud computing, and AI.
Search alone generated $48.5 billion in revenue, while the cloud division achieved a significant milestone of $10 billion in revenue and its first $1 billion in operating profit. Google CEO Sundar Pichai highlighted the success of the company’s generative AI solutions, which have already generated billions in revenue and attracted over 2 million developers.
Here is what Pichai said in a letter to investors:
We are innovating at every layer of the AI stack. Our longstanding infrastructure leadership and in-house research teams position us well as technology evolves and as we pursue the many opportunities ahead.
Google Search and the company’s AI wing are no longer separate either. The search engine giant has long been experimenting with AI Overviews in Search, but recently, it became widely available to everyone using Google Chrome. The feature provides summaries of your search queries and is powered by Google’s in-house large language model, Gemini.
However, users quickly discovered that AI Overviews provide bizarre and completely incorrect answers in some search results. This forced Google to take down the faulty answers, regardless, Pichai claims that AI Overviews have increased Search usage and overall user satisfaction.
In our testing at ProPakistani, we found Google’s AI Overviews to be helpful in both time-saving and providing relevant information without going through multiple links.
Google’s advertising division is doing as well as always, reaching an impressive valuation of $64.6 billion. This comes thanks to a boost in YouTube ads, which made 13% more compared to last year at $8.6 billion. This can likely be attributed to YouTube blocking ad blockers on its platform. Meanwhile, the combined revenue from subscriptions, platforms, and devices reached $9.3 billion.
Alphabet is expected to experience further growth following its upcoming hardware event in August. The tech giant will unveil the Pixel 9 and Pixel 9 Pro Fold smartphones at this event.
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