'Google's AI Push Is Lifting Search': CEO Sundar Pichai Says As Alphabet's Revenue Jumps 25%
Google CEO Sundar Pichai said on Alphabet's third-quarter earnings call that the company's AI spending is driving more people to search. Year-on-year query growth is now the highest in five years, he said, and he credited AI features for the increase. Revenue and Cloud Alphabet's quarterly revenue rose 25 percent year on year to about $127.6 billion. Pichai said the company is now on a…
Alphabet CEO Sundar Pichai disclosed that the company's investments in artificial intelligence (AI) are driving increased search traffic and overall revenue growth. During the Alphabet's third-quarter earnings call, Pichai noted that year-over-year search query growth is the highest in five years, attributing this increase to AI features.
Alphabet's revenue rose 25% year on year to approximately $127.6 billion. Google Cloud, which focuses on AI infrastructure and solutions, saw a remarkable 103% increase in revenue to $30.7 billion. This growth is due to heavy demand for AI solutions, according to Pichai.
Google Search and other advertising revenue grew 12% to about $63.3 billion, while Google Cloud led the surge in growth. Moreover, Q3 has been particularly strong, with Alphabet hitting a half-trillion-dollar annual revenue run rate, as reported by WRAL. AI Overviews, AI Mode, and traditional Search are now merged into one experience, with users asking longer, more detailed questions and using voice, image, and document-based searches.
AI Mode queries are about three times longer than traditional ones, and one in five AI Mode searches involves voice, images, or documents. Google has also processed over 50 billion visual searches per month.
The Gemini app has reached a significant milestone, with one billion users, marking the fastest growth of any product in Google's history. Pichai highlighted that Gemini 4 Argon, recently launched, experienced far heavier usage than its predecessor, Gemini 3, despite limited capacity. The new Gemini 4 Argon saw three and a half times faster developer usage in its first week.
Gemini 4 Carbon, described as Google's strongest frontier model, will initially be made available to selected cybersecurity experts before a wider release. Pichai also shared that Google teams across Chrome, Ads, and Search have utilized Argon to ship 35% more code with 30% fewer errors. He anticipates further acceleration in the upcoming year, with more models, including efficient versions for developers, on the horizon.
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