Alphabet’s Pricey AI Bet Pays Off With Cloud, Search Growth
- Google has reduced the cost of AI answers in search queries
- AI expertise is helping draw cloud customers, CEO Pichai says
WATCH: Google Cloud driving Alphabet earnings, analyst Kessler says.
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Google parent Alphabet Inc. is showing an expensive foray into artificial intelligence is starting to pay off, delivering better-than-expected sales for its cloud-computing business and driving more usage of its flagship search engine.
Revenue, excluding partner payouts, jumped 16% to $74.6 billion from a year ago, the company said in a statement Tuesday, surpassing analysts’ estimates. Third-quarter net income of $2.12 per share also far exceeded projections.