"Alphabet has capitalized on the AI boom by enhancing its search engine results and online ad placements, but that's far from the only way Google's parent company used this technology to surpass Apple's profits. While search and online ads are still important, Google Cloud has emerged as a substantial catalyst. Google Cloud acts as the digital foundation for many businesses, especially enterprises that want to scale their AI capabilities."
"Alphabet also has the Gemini App, its answer to ChatGPT, which has more than 750 million monthly active users. Most people use the free version of Gemini, but it has monthly subscription plans that come with additional features. It can become a long-term profit engine for the company in addition to its growing online advertising and cloud computing segments."
Alphabet became the most profitable company by leveraging artificial intelligence across search, advertising, cloud, and consumer products. Google Cloud accelerated growth, serving as a digital foundation for enterprises scaling AI and delivering 48% year-over-year revenue growth in Q4 driven by AI enterprise demand. The Gemini App reached over 750 million monthly active users, with free usage predominant but subscription tiers offering monetization potential. Google reinvests profits into growth initiatives across its portfolio. Google Cloud reached profitability after roughly 15 years, and continued investments in units like Gemini and Waymo aim to produce long-term earnings expansion and margin improvement.
Read at 24/7 Wall St.
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