How did Alphabet's Q4 earnings perform?

Alphabet surpassed analyst expectations in the fourth quarter, reporting an 18% revenue increase to $113.8 billion and a 30% profit rise to $34.5 billion.

What is driving Alphabet's revenue growth?

Growth is driven by a 14% increase in digital advertising sales and a significant 48% jump in revenue from its AI-focused data center services division.

How is Alphabet investing in AI?

Alphabet is significantly increasing capital expenditures for AI, having spent $91 billion last year and planning even greater investments this year to bolster its AI infrastructure.

Home / Business and Economy / AI Boom Powers Alphabet Past Earnings Forecasts

AI Boom Powers Alphabet Past Earnings Forecasts

5 Feb

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Summary

Alphabet reported a 30% profit increase to $34.5 billion.
Digital ad growth exceeded 10% for the third consecutive quarter.
AI-driven data center services saw sales climb over 30%.

AI Boom Powers Alphabet Past Earnings Forecasts

Alphabet, Google's parent company, announced impressive fourth-quarter results that surpassed analyst expectations, signaling a strong performance amidst the burgeoning AI revolution. The company posted an 18% revenue increase, reaching $113.8 billion, with a notable 30% rise in profit to $34.5 billion.

This financial success is attributed to sustained growth in Google's core digital advertising business, which saw a 14% year-over-year increase in sales. Simultaneously, its AI-focused division, powering data centers for AI services, experienced a substantial 48% revenue jump.

Alphabet CEO Sundar Pichai highlighted the record usage in Search, emphasizing AI's role in this expansion. The company is actively embedding its Gemini AI technology across its services, including Search, Gmail, and Chrome, to enhance user experience and fend off emerging competitors.