Alphabet-C Interprets the Key Moment of AI: "The Steeper the Technology Curve, the More Excited We Are"!

Although it was visibly outperformed by its old rival Microsoft in the artificial intelligence (AI) competition, Alphabet-C still managed to deliver a decent financial report under pressure:

Alphabet-C's parent company, Alphabet-C, exceeded expectations in the first quarter with revenue growth of 3% to nearly $70 billion;

Earnings per share (EPS) of $1.17 exceeded expectations, and the 4.9% year-on-year decline was also better than expected;

Most importantly, although Alphabet-C's advertising revenue is still declining, the decline is better than expected and the quarter-on-quarter decline has slowed significantly. The Alphabet-C service department, including Alphabet-C advertising, YouTube, and other key businesses, has shown strong growth, surprising analysts.

However, like Microsoft, the hottest topic on the conference call for this financial report was still AI.

Alphabet-C CEO Sundar Pichai admitted at the beginning of the call that the company had made progress in its research on deep learning and AI during the quarter. AI has brought incredible opportunities to consumers, partners, and Alphabet-C's business, "I compare it to the successful transformation we made from desktop computing to mobile computing more than a decade ago," and "AI has always been the foundation of our advertising business."

Alphabet-C's Chief Business Officer Philipp Schindler also added that he sees significant opportunities for long-term growth in the advertising business from Alphabet-C's AI.

However, Alphabet-C's Chief Financial Officer Ruth Porat also pointed out that the AI war is not easy to fight, and therefore, "considering that capital expenditures, including technology infrastructure, will increase significantly, overall capital expenditures this year will be slightly higher than last year's record level."

Undeniably, as new AI tools continue to emerge, the behavior of users, developers, and even Alphabet-C's internal engineers has changed to some extent. How does Alphabet-C view these changes?

Pichai sees the arrival of AI as "an exciting moment" and believes that the experience improvement brought by AI tools is "an opportunity." Large models can better serve users, and it is a critical moment for Alphabet-C's cloud services.

This is because almost every company and organization is considering how to use AI tools to improve efficiency and promote transformation. Therefore, whether it is a startup or a large enterprise, they are working closely with Alphabet-C.

Regarding "Alphabet-C version of ChatGPT" Google Bard and the combination with search products, Alphabet-C stated that Bard is now being launched as a complementary product to the search engine, and the experience of large models will be more naturally introduced into the search field in the future. Everything is still in its early stages, and there will be many innovations in the future. In terms of cost calculation, Pichai described it as "constantly improving software and hardware, and model efficiency has become a habit", "the steeper the technical curve, the more excited we are." Alphabet-C believes that the company already has world-class AI capabilities, and the next step is to reduce costs and deploy on a large scale globally. Thus, Alphabet-C's ambition is evident.