Google and Alphabet CEO Sundar Pichai said that the company is integrating artificial intelligence technology into its platforms and services, positioning itself advantageously in the AI era.
According to Alphabet's report, the company's revenue was $80.5 billion, with a profit of $23.7 billion, thanks to the growth of its cloud computing, YouTube, and online search advertising businesses.
Alphabet CEO Sundar Pichai stated that AI technology is the driving force behind the development of Silicon Valley tech giants.
Pichai said, "We are in the Gemini era (referring to Google's AI model), and the company is showing strong momentum." Pichai was referring to the AI model that powers Google's various platform services.
"Our leading position in AI research and infrastructure, along with our global product layout, puts us in a favorable position for the next wave of AI innovation."
At the end of the trading day, Alphabet's stock price slightly declined, but it soared over 12% to $177 after the financial report was released.
According to the report, Google's advertising business generated $61.7 billion in revenue for the quarter, compared to $54.5 billion in the same period last year.
YouTube's advertising revenue was $8 billion, higher than the $6.7 billion in the first quarter of 2023.
Google Cloud's revenue reached $9.5 billion, compared to $7.5 billion in the same period last year.
At the time of this financial report release, Google, Microsoft, Amazon, and other competitors in the AI field are facing scrutiny from US and European regulatory agencies.
The Federal Trade Commission (FTC) launched a study earlier this year on AI investments and alliances to ensure that regulatory oversight can keep up with AI development and prevent major players from excluding competitors in areas that could lead to disruptive changes in multiple industries.
FTC Chair Lena Khan stated in a statement, "Our study will reveal whether dominant companies' investments and partnerships could distort innovation and undermine fair competition."
One major concern is that generative AI can produce human-level content in a matter of seconds through software, which requires a significant amount of computing power, a capability that only large tech companies can provide.
Amazon, through its Amazon Web Services division, Microsoft, and Google, are the world's largest cloud-based data center providers, capable of storing and processing data on a massive scale, and they are also among the wealthiest companies in the world.
In the generative AI revolution, Microsoft has been the fastest to act, reportedly investing $13 billion in OpenAI, the creator of ChatGPT.
