Alphabet, Google's parent company, reported a significant 28.6% increase in profits in the second quarter of 2024, despite a $2.3 billion loss from its AI research division. The company's net income reached $23.6 billion, surpassing revenue estimates by over $14 billion. The reported loss from 'Alphabet-level activities' doubled from the previous year. These activities primarily involve AI-focused research and development costs, including projects by Google's DeepMind and Google Research. CEO Sundar Pichai highlighted the success of AI initiatives in driving growth, with the cloud business generating over $10 billion in revenue for the first time. Despite a flat stock performance initially, Alphabet's shares fell by over 2% after the financial statement release. In comparison to tech giants like Microsoft and Apple, Alphabet's stock performance in 2024 has been strong, although Nvidia leads the pack with a remarkable 154.5% increase. Read more AI-generated news on: https://app.chaingpt.org/news
Alphabet's Profits Surge Despite AI Division Losses
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