Sundar Pichai, CEO of Alphabet (Google’s parent company), announced that AI now generates over 25% of new code within Google, with human engineers reviewing this AI-generated code before it’s implemented. This approach has boosted productivity, allowing engineers to work more efficiently and quickly.
Over the last year, Google has made significant structural changes to streamline its operations and adapt to the rapid advancements in AI. This includes merging AI research groups, Google Brain and DeepMind, into a unified division now called Google DeepMind. This division also developed Gemini, a family of AI models meant to drive innovation. Recently, Google also moved the Gemini app team to DeepMind to accelerate deployment and refine model improvements post-training.
On the earnings front, Alphabet reported a 15% increase in revenue year-on-year, reaching $88.3 billion, primarily due to a 35% boost in its cloud business. Google’s popular services, including its search engine, generated $76.5 billion, an increase of 13%. Pichai noted that seven of Google’s products, including Google Maps, now reach over 2 billion monthly users, and each has begun to integrate Gemini models with an ambitious roadmap for future iterations.
As Alphabet invests heavily in AI, it recorded a 62% increase in capital expenditures in Q3, largely due to investments in infrastructure. CFO Anat Ashkenazi signaled that capital investments in AI would continue rising in 2025, balancing this with organizational efficiency.
