Alphabet Posts 15% Revenue Jump, AI Investments Pay Off, Shares Rise 6.1%

Oct 29, 2024, 09:11 PM

Google parent company Alphabet Inc. reported a 15% increase in revenue, attributing the growth to successful investments in artificial intelligence (AI) across its Search and Cloud businesses. CEO Sundar Pichai highlighted that AI investments are 'paying off,' with significant advancements such as reducing machine cost per query by over 90% in 18 months and expanding the custom Gemini model. The company also announced that its capital expenditures (CapEx) for the fourth quarter will be similar to the third quarter's $13 billion, but expects higher CapEx in 2025. Alphabet's new CFO emphasized the focus on efficiency to fund priority areas, noting that the increase in CapEx for 2025 will not match the same percentage rise seen between 2023 and 2024. Additionally, Gemini API calls have grown nearly 14x in a six-month period, and shares rose 6.1% in after-hours trading.