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Wed Oct 30 2024

More than a quarter of new code at Google is created by artificial intelligence.

The company had an excellent quarter, largely thanks to artificial intelligence.

Google is developing a wide range of products based on artificial intelligence and is integrating this technology into the product creation process. According to Sundar Pichai, the company's CEO, more than 25% of the new code generated at Google comes from AI, which is reviewed and approved by engineers during its development. This is a significant milestone that highlights the relevance of artificial intelligence to the company.

Additionally, artificial intelligence is contributing to Google's financial growth. Alphabet reported revenues of $88.3 billion for the quarter, with $76.5 billion coming from Google Services (which includes search), representing a 13% increase compared to the previous year. Google Cloud, which encompasses its AI infrastructure products for other companies, generated $11.4 billion, equivalent to a 35% year-over-year increase.

Operating revenues also showed strong results. Google Services reached revenues of $30.9 billion, compared to $23.9 billion the previous year, while Google Cloud generated $1.95 billion, a significant increase from $270 million last year. These results indicate that, despite the perception that Google is not as reliable as it once was, the company continues to operate a very robust business.

Artificial intelligence is a key strategic focus for Google, evidenced by the launch of features such as personalized chatbots powered by Gemini (referred to as "Gems"), automatic note-taking in Google Meet, and various AI generation tools designed to support content creators on YouTube. Furthermore, the company’s recent Pixel 9 phone line includes multiple AI tools.

Pichai commented on the new features in Search, noting that “our new AI features are expanding what people can search for and how they search for it.” Regarding Google Cloud, he stated that “our AI solutions are helping deepen adoption of products with existing customers, attract new customers, and win larger contracts.” He also highlighted that total YouTube advertising and subscription revenues exceeded $50 billion in the last four quarters for the first time.

However, Google faces a challenging future following a ruling in August that designates the company as a monopolist in the search and advertising markets. This case, brought by the U.S. Department of Justice, is currently in the corrective measures phase. While there is still a long way to go, the prospect of a breakup of Google is under discussion.