Alphabet Bets Big on AI with $50B Investment to Transform Google Search and Cloud Services

Alphabet doubles AI focus, investing $50B in search upgrades, Google Cloud growth, and medical technology.

Dec 11, 2024

Summary

Reuters reports Alphabet's $50B AI investment aims to enhance Google Search and boost cloud and medical innovations.

A Reuters story claims Alphabet (GOOG, GOOGL) is doubling down on artificial intelligence to improve search capabilities. During the Tuesday Reuters NEXT conference in New York, Alphabet's president and chief investment officer, Ruth Porat, underlined the company's strategy's core reliance on artificial intelligence.

Porat said that Google Search is the company's biggest project involving artificial intelligence, and that the platform keeps changing with tools like shopping advertising in Google Lens and AI Overviews. These developments follow Microsoft (MSFT, Financial)-backed OpenAI intensifying the battle with improved ChatGPT
search capabilities.

Though artificial intelligence has great potential, problems include "hallucinations," or erroneous answers produced by AI models still exist. Porat stressed Alphabet's emphasis on improving technology and juggling
investments with performance criteria.

To underline the scope of its dedication, Alphabet has estimated $50 billion in capital investment for 2024 on processors, data centers, and related infrastructure to assist artificial intelligence development. Apart from artificial intelligence, Porat highlighted Google Cloud as a crucialarea of investment and spoke about the company's projects to forward medical technologies.

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