{"id":24170,"date":"2024-04-26T00:37:37","date_gmt":"2024-04-26T00:37:37","guid":{"rendered":"https:\/\/afreeurl.com\/?p=24170"},"modified":"2024-04-26T00:37:40","modified_gmt":"2024-04-26T00:37:40","slug":"google-declares-gemini-era-as-revenue-grows-15","status":"publish","type":"post","link":"https:\/\/afreeurl.com\/?p=24170","title":{"rendered":"Google declares &#8216;Gemini era&#8217; as revenue grows 15%"},"content":{"rendered":"<p><\/p>\n<p>Alphabet Inc., the parent company of Google, announced its first quarter of 2024 <a href=\"https:\/\/abc.xyz\/assets\/91\/b3\/3f9213d14ce3ae27e1038e01a0e0\/2024q1-alphabet-earnings-release-pdf.pdf\" target=\"_blank\" rel=\"noopener\">financial results<\/a> today.<\/p>\n<p>While Google posted double-digit growth in key revenue areas, the focus was on its developments in AI, dubbed the &#8220;Gemini era&#8221; by CEO Sundar Pichai.<\/p>\n<h2>The numbers: 15% revenue growth, expanded operating margins<\/h2>\n<p>Alphabet reported first-quarter revenue of $80.5 billion, up 15% year over year, beating Wall Street projections.<\/p>\n<p>Net income was $23.7 billion, with diluted earnings per share of $1.89.  Operating margins increased to 32%, compared to 25% the previous year.<\/p>\n<p>Ruth Porat, president and chief financial officer of Alphabet, said:<\/p>\n<p>&#8220;Our strong financial results reflect the strength of revenues across the company and ongoing efforts to sustainably reinvent our cost base.&#8221;<\/p>\n<p>Google&#8217;s core advertising units, such as Search and YouTube, drove growth.  Google&#8217;s advertising revenue reached $61.7 billion in the quarter.<\/p>\n<p>The Cloud division also maintained momentum, with revenue of $9.6 billion, up 28% from a year earlier.<\/p>\n<p>Pichai highlighted that YouTube and Cloud are expected to exit by 2024 with a combined annual revenue rate of $100 billion.<\/p>\n<h2>Integrating generative AI into search<\/h2>\n<p>Google experimented with AI-based features in Search Labs before recently introducing AI overviews to the main search results page.<\/p>\n<p>As for the gradual rollout, Pichai <a href=\"https:\/\/blog.google\/inside-google\/message-ceo\/alphabet-earnings-q1-2024\/\" target=\"_blank\" rel=\"noopener\">states<\/a>:<\/p>\n<p>&#8220;They&#8217;re measuring how we&#8217;re doing, focusing on areas where AI can improve the search experience, while prioritizing traffic to websites and merchants.&#8221;<\/p>\n<p>Pichai reports that Google&#8217;s generative AI features have already answered more than a billion queries:<\/p>\n<p>&#8220;We&#8217;ve already served billions of queries with our generative AI features. It enables people to access new information, ask questions in new ways, and ask more complex questions.&#8221;<\/p>\n<p>Google reports increased search usage and user satisfaction among those who interact with the new AI overview results.<\/p>\n<p>The company also highlighted its &#8220;Search to Search&#8221; feature on Android, which allows users to circle objects on the screen or in videos to get instant answers with artificial intelligence through Google Lens.<\/p>\n<h2>Reorganizing for the &#8220;Age of Gemini&#8221;<\/h2>\n<p>As part of its AI roadmap, Alphabet is consolidating all teams building AI models under the Google DeepMind umbrella.<\/p>\n<p>Pichai revealed that through hardware and software improvements, the company has reduced the machine costs associated with its generative AI search results by 80% over the past year.<\/p>\n<p>He states:<\/p>\n<p>\u201cOur data centers are some of the highest performing, most secure, most reliable and most efficient in the world.  We&#8217;ve developed new AI models and algorithms that are over a hundred times more efficient than 18 months ago.<\/p>\n<h2>How will Google make money with AI?<\/h2>\n<p>Alphabet sees opportunities to monetize AI through its ad products, cloud offerings and subscription services.<\/p>\n<p>Google is integrating Gemini into advertising products like Performance Max.  The company&#8217;s Cloud division delivers &#8220;the best of Google AI&#8221; to business customers around the world.<\/p>\n<p>Google One, the company&#8217;s subscription service, surpassed 100 million paying subscribers in the first quarter and introduced a new premium plan with advanced generative AI capabilities powered by Gemini models.<\/p>\n<h2>Future perspectives<\/h2>\n<p>Pichai outlined six key advantages to position Alphabet to lead the &#8220;next wave of AI innovation&#8221;:<\/p>\n<p>Research leadership in AI breakthroughs like the multimodal Gemini model Robust AI infrastructure and custom TPU chips Integration of generative AI into search to improve user experience A global product footprint reaching billions Simplified teams and improved execution speed Multiple revenue streams to monetize AI through advertising and the cloud<\/p>\n<p>With upcoming events like Google I\/O and Google Marketing Live, the company is expected to share more updates on its AI initiatives and product roadmap.<\/p>\n<p>Featured image: Sergei Elagin\/Shutterstock<\/p>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.searchenginejournal.com\/google-declares-it-the-gemini-era-as-revenue-grows-15\/514903\/\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Alphabet Inc., the parent company of Google, announced its first quarter of 2024 financial results today. While Google posted double-digit growth in key revenue areas, the focus was on its developments in AI, dubbed the &#8220;Gemini era&#8221; by CEO Sundar Pichai. The numbers: 15% revenue growth, expanded operating margins Alphabet reported first-quarter revenue of $80.5 billion, up 15% year over year, beating Wall Street projections. Net income was $23.7 billion, with diluted earnings per share&#8230; <\/p>\n","protected":false},"author":1,"featured_media":24171,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-24170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-seo-news"],"_links":{"self":[{"href":"https:\/\/afreeurl.com\/index.php?rest_route=\/wp\/v2\/posts\/24170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/afreeurl.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afreeurl.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/afreeurl.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/afreeurl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24170"}],"version-history":[{"count":1,"href":"https:\/\/afreeurl.com\/index.php?rest_route=\/wp\/v2\/posts\/24170\/revisions"}],"predecessor-version":[{"id":24172,"href":"https:\/\/afreeurl.com\/index.php?rest_route=\/wp\/v2\/posts\/24170\/revisions\/24172"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afreeurl.com\/index.php?rest_route=\/wp\/v2\/media\/24171"}],"wp:attachment":[{"href":"https:\/\/afreeurl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afreeurl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afreeurl.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}