Google-parent Alphabet on Tuesday reported profit and revenue that beat expectations as its cloud and search ads businesses thrived. The tech giant said its net income for the recently ended quarter was $23.6 billion on revenue that climbed 14 percent to $84.
7 billion when compared to the same period a year earlier. "Our strong performance this quarter highlights ongoing strength in Search and momentum in Cloud," Google chief executive Sundar Pichai said in an earnings release. Alphabet said that its cloud computing unit took in $10.
3 billion in revenue compared with $8 billion in the same quarter last year, while search ad revenue climbed to $48.5 billion from $42.6 billion.
Only YouTube's revenues came in slightly below analysts' forecasts, at $8.66 billion. The ramped up revenue comes as investors worry that investments in artificial intelligence may not be generating significant returns for tech companies.
Since the release of ChatGPT at the end of 2022, companies in the sector have been engaged in a frantic race to deploy these generative AI programs for producing text, images and other content, simply through prompts in everyday language. "We are innovating at every layer of the AI stack," Pichai said. "Our longstanding infrastructure leadership and in-house research teams position us well as technology evolves and as we pursue the many opportunities ahead.
" The earnings release came the same day as reports said Israel-based cloud security startup Wiz has walked away fr.