In a time where the biggest tech companies are constantly trying to outdo each other, Alphabet (that’s the company that owns Google) recently shared some news about how it’s doing money-wise. And it’s mostly good news! They made more money than people thought they would, with a total revenue of $76.69 billion in the last three months ending on September 30th. They also made a profit of $19.7 billion, with their earnings per share hitting $1.55, which is more than what the experts predicted.
However, not everything is perfect. When we take a closer look, especially at their cloud computing business (that’s stuff like storing data and running applications over the internet), they didn’t do as well as some people expected. Google Cloud made $8.41 billion, but the experts thought they would make around $8.64 billion. This might seem like a small difference, but it’s a big deal because Google Cloud is trying to catch up with Amazon’s AWS and Microsoft’s Azure, which are the biggest players in this space.
Now, let’s talk about the money they make from ads. They’re doing pretty well here, with their ad revenue going up from $54.48 billion last year to $59.65 billion this year. YouTube ads also brought in a lot of money, $7.95 billion to be exact, which is more than what was expected. But they are facing some challenges, like a tough economy and more competition, especially from TikTok.
Now, here’s the exciting part: Alphabet has decided to invest $2 billion in Antropic, a company that’s doing some really cool stuff with artificial intelligence (AI). This is a big deal because Amazon just put $4 billion into the same company. So, the race is on between these tech giants to see who can dominate in AI. Antropic has developed this AI system called Claude 2, and it’s said to be really good, even better than ChatGPT, which is backed by Microsoft.
Speaking of Microsoft, their Azure cloud business is doing really well, with their revenue growing faster than expected. On the other hand, Amazon’s AWS is still the biggest in the market, but its growth has slowed down a bit.
In the end, Google’s parent company, Alphabet, is showing that it’s ready to fight and stay in the game, especially when it comes to AI and cloud computing. With this new investment in Antropic, they are making a clear statement that they want to be a big player in this new era of technology.
