Google’s parent company Alphabet posted its quarterly earnings on Tuesday. A highlight of the earnings call with the company’s CEO Sundar Pichai was how the Mountain View-based tech giant is optimizing the cost of running expensive artificial intelligence (AI) infrastructure for all its products and services. The CEO said the company now produces more than a quarter of all new code using generative AI, making the company more cost-efficient.
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In a blog post, Google detailed the highlights of Pichai’s speech at the earnings call. A large part of the speech was dedicated to AI and how the tech giant has solved major problems in building and expanding infrastructure. Alphabet earned $88.3 billion (roughly Rs. 7.4 lakh crore) in revenue last quarter, where the majority of the revenue increase came from AI-based services it began offering at the beginning of the year.
Pichai highlighted that a large part of the increased revenue was the result of the company reducing its expenses and operating faster with a lean structure. “For example, it was a small, dedicated team that created the Notebook LM, which is an incredibly popular product with a lot of potential,” he said.
However, the biggest achievement for the tech giant was probably using AI to write code for various products. Highlighting how the company was able to boost productivity and efficiency, he said that more than a quarter of all new code at Google is now being generated by AI, which is then reviewed and accepted by engineers. goes.
A key area of focus for Google is its search products, which now include its search engine, Circle to Search, AI Overview, and Google Lens. Pichai claimed that the company has been able to reduce costs for each service. Most significant is the AI overview which is said to have “reduced costs for these queries by more than 90 percent through hardware, engineering and technological breakthroughs.”
Google also saw revenue growth in Google Cloud Services. Pichai said the division achieved revenue of $11.4 billion (roughly Rs. 95,850 crore), an increase of 35 percent year-on-year. It also achieved an operating margin of 17 percent.
Going forward, the tech giant plans to continue investing in AI technologies, enhancing its capabilities and further optimizing costs.
