Google’s parent Alphabet’s quarterly earnings soars as AI and cloud revenue surge, but YouTube’s performance disappoints

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Google,Youtube,Cloud Computing

SAN FRANCISCO, July 24 — Google-parent Alphabet yesterday reported profit and revenue that beat expectations as its AI-amped cloud and search ads businesses thrived. The tech...

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“Our strong performance this quarter highlights ongoing strength in Search and momentum in Cloud,” said Google chief executive Sundar Pichai. Since the release of ChatGPT at the end of 2022, players in the sector have been engaged in a frantic race to deploy generative AI programs for producing text, images and other content, simply through prompts in everyday language.“Our longstanding infrastructure leadership and in-house research teams position us well as technology evolves and as we pursue the many opportunities ahead.

Investors have been keen to learn whether recently added AI-generated query result summaries referred to as “Overviews” cause a drop in online ad revenue at Google. “With AI, we are delivering better responses on more types of search queries and introducing new ways to search,” Pichai said.On the earnings call, chief financial officer Ruth Porat said Alphabet is going to invest another US$5 billion in its Waymo autonomous car unit over the next few years.

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