San Francisco - USA
San Francisco, Oct 29, 2024 (AFP) -Google's parent company Alphabet reported robust third-quarter results on Tuesday, with revenue climbing 15 percent year-over-year to $88.3 billion, powered by strong performance from its crucial advertising business and growth in cloud services.
The technology giant's net income surged 34 percent to $26.3 billion, while earnings per share increased 37 percent to $2.12.
Operating margins expanded significantly, rising 4.5 percentage points to 32 percent, reflecting improved cost efficiency at one of the world's biggest companies.
"Our commitment to innovation, as well as our long-term focus and investment in AI, are paying off with consumers and partners benefiting from our AI tools," said CEO Sundar Pichai, referring to the burgeoning field of artificial intelligence.
The results showed that Google is holding its own despite worry that the search engine juggernaut has been caught short in the AI race.
Google also faces increasing pressure as its world-dominating search engine competes for ads with a widening array of platforms, including Meta, Amazon, Apple, TikTok and even streamers such as Netflix.
But Emarketer senior analyst Evelyn Mitchell-Wolf said Google proved that its defense "is locked in, and it heads into the holiday season well-positioned to win ad budgets."
The company also satisfied questions about whether its search engine will withstand the growing popularity of generative AI chatbots like ChatGPT, which can answer many queries directly in lieu of an internet search.
In response to these pressures, Google earlier this month reshuffled its search engine business, replacing the division chief after a four-year tenure.
The company also moved its Gemini chatbot team to Google DeepMind, separating it from the search group.
Pichai said that Google Search's AI Overviews, which display a snapshot of information at the top of the results page, was proving a success and available to one billion users in more than 100 countries.
"We are definitely expanding what's possible in search and it's been really heartening to see users adapt," Pichai told analysts.
Google Cloud emerged as a standout performer in the June-to-September period, with revenue jumping 35 percent to $11.4 billion, driven by increased adoption of AI infrastructure and solutions.
That business, which trails market leaders Amazon and Microsoft, provides businesses with computing power, data storage and AI tools delivered over the internet.
The company's core Google Services segment, which includes Search, YouTube, and other advertising products, grew 13 percent to $76.5 billion.
YouTube hit a significant milestone, with total advertising and subscription revenues exceeding $50 billion over the past four quarters for the first time.
After the release, investors sent Google's share price higher by five percent in after-hours trading.
Despite the solid earnings, Google faces significant legal challenges, at least in the long-term.
In August, a federal judge found that Google's search engine was an illegal monopoly, with the US government suggesting a company breakup might be appropriate.
A separate antitrust lawsuit challenges its dominance of online advertising.
Additionally, Google has been ordered to open Android-powered smartphones to rival app shops following a case brought by Fortnite-maker Epic Games, though that decision has been suspended pending appeal.
While those legal battles are expected to take years to resolve, they have raised questions about the company's long-term strategy and its heavy reliance on search engine advertising revenue.
Google reports strong growth driven by AI, cloud
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Google reports strong growth driven by AI, cloud
MenaML hosts 2026 Winter School in Saudi Arabia to boost AI education, collaboration in region
- Second edition of Winter School will be hosted in partnership with KAUST
DUBAI: The Middle East and North Africa Machine Learning Winter School will host its second edition in Saudi Arabia this year, in partnership with the King Abdullah University of Science and Technology.
The non-profit held its inaugural edition in Doha last year in partnership with the Qatar Computing Research Institute.
The initiative began when like-minded individuals from Google DeepMind and QCRI came together to launch a platform connecting a “community of top-tier AI practitioners with a shared interest in shaping the future of the MENA region,” Sami Alabed, a research scientist at Google DeepMind and one of the co-founders of MenaML, told Arab News.
Along with Alabed, the core team includes Maria Abi Raad and Amal Rannen-Triki from Google DeepMind, as well as Safa Messaoud and Yazan Boshmaf from QCRI.
Messaoud said that the school has three goals: building local talent in artificial intelligence, enhancing employability and connection, and reversing brain drain while fostering regional opportunity.
AI has dominated boardrooms and courtrooms alike globally, but “AI research and education in MENA are currently in a nascent, yet booming, stage,” she added.
Launched at a pivotal moment for the region, the initiative was timed to ensure “regional representation in the global AI story while cultivating AI models that are culturally aligned,” said Rannen-Triki.
The school’s vision is to cultivate researchers capable of developing “sophisticated, culturally aligned AI models” that reflect the region’s values and linguistic and cultural diversity, said Messaoud.
This approach, she added, enables the region to contribute meaningfully to the global AI ecosystem while ensuring that AI technologies remain locally relevant and ethically grounded.
MenaML aims to host its annual program in a different city each year, partnering with reputable institutions in each host location.
“Innovation does not happen in silos; breakthroughs are born from collaboration that extends beyond borders and lab lines,” said Alabed.
“Bringing together frontier labs to share their knowledge echoes this message, where each partner brings a unique viewpoint,” he added.
This year, MenaML has partnered with KAUST, which “offers deep dives into specialized areas critical to the region, blending collaborative spaces with self-learning and placement programs,” said Abi Raad.
The program, developed in partnership with KAUST, brings together speakers from 16 institutions and focuses on four key areas: AI and society, AI and sciences, AI development, and regional initiatives.
“These themes align with the scientific priorities and research excellence pillars of KAUST as well as the needs of regional industries seeking to deploy AI safely and effectively,” said Bernard Ghanem, professor of electrical and computer engineering and computer science at KAUST and director of the Center of Excellence in Generative AI.
The program will also highlight efficiency in AI systems, with the overall goal of equipping “participants with the conceptual and practical understanding needed to contribute meaningfully to next-generation AI research and development,” he told Arab News.
For KAUST, hosting the MenaML Winter School aligns with Saudi Arabia’s ambition to become a global hub for AI research under Vision 2030.
By attracting top researchers, industry partners, and young talent to the Kingdom, it helps cement the Kingdom’s position as a center for AI excellence, Ghanem said.
It also aligns closely with Vision 2030’s “goals of building human capital, fostering innovation, and developing a knowledge-based economy” and “contributes to the long-term development of a world-leading AI ecosystem in Saudi Arabia,” he added.
Although the program accepts students from around the world, participants must demonstrate a connection to the MENA region, Abi Raad said.
The goal is to build bridges between those who may have left the region and those who remain, enabling them to start conversations and collaborate, she added.
A certain percentage of spots is reserved for participants from the host country, while a small percentage is allocated to fully international students with no regional ties, with the objective of offering them a glimpse into the regional AI ecosystem.
Looking ahead, MenaML envisions growing from an annual event into a sustainable, central pillar of the regional AI ecosystem, inspired by the growth trajectory of global movements like TED or the Deep Learning Indaba, a sister organization supporting AI research and education in Africa.
Boshmaf said MenaML’s long-term ambition is to evolve beyond its flagship event into a broader movement, anchored by local MenaMLx chapters across the region.
Over time, the initiative aims to play a central role in strengthening the regional AI ecosystem by working with governments and the private sector to support workforce development, AI governance and safety education, and collaborative research, while raising the region’s global visibility through its talent network and international partnerships.
He added: “If TED is the global stage for ‘ideas worth spreading,’ MenaML is to be the regional stage for ‘AI ideas worth building.’”
The MenaML Winter School will run from Jan. 24 to 29 at KAUST in Saudi Arabia.
