Alphabet, the parent company of Google, published on February 2, its results for the fourth quarter of 2022 and its balance sheet for the fiscal year. With slow growthaffected by slack advertising revenue, the tech giant prepare its future with artificial intelligence.
Results half a fig and half a grape
Over the past three months, Alphabet has been releasing $73.3 billion in revenue, just 1% more than in the same period of the previous year. For the whole year, the American company generated $282.8 billion. A 10% increase over 2021, but still well below the 41% increase. registered between 2020 and 2021.
Alphabet’s net income is $13.6 billion for the last quarter of 2022, down 34% compared to the fourth quarter of 2021. For the full year, the group reported profit of $60 billion, compared to $76 billion a year earlier.
Several divisions late
In its balance sheet, Alphabet acknowledges difficulties faced by many sectors. Its advertising revenue reached $59 billion, down slightly from $61.2 billion in 2021. Search and YouTube are the two departments most affected by these slowdowns.
In reverse, the Cloud division performed better with revenues of $7.3 billion, up 32% from the last quarter of 2021. It even managed cut its losses to $480 million in the last three months of 2022, compared to $890 million in the same period a year earlier.
Despite its complicated results, YouTube continues to break records with his Shorts, its short video format designed to compete with TikTok. Sundar Pichai, chairman and CEO of the group, indicated that these had surpassed 50 billion daily views.
Alphabet bets on artificial intelligence for its future
For its future development, Alphabet take the bet of artificial intelligence. The head of Google explains (PDF) that ” Artificial intelligence is the most profound technology we work with today “. He is emphasizing that ” our researchers, our infrastructure and our technologies guarantee it we are very well placedat a time when AI is reaching a tipping point “.
The mastodon seeks especially to compete with OpenAI and ChatGPT with their own LaMDA language model. He plans to distribute it to the general public. in the coming weeks and months “. Alphabet also plans to use artificial intelligence to improve their products like Gmail or Google Docs, but also some divisions such as the cloud and online advertising.
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