Alphabet, Google's parent company known for its ongoing ventures in autonomous vehicles and quantum computing, recently declared a strategic realignment to concentrate on its core online search business. The company plans to propel this segment to new heights using artificial intelligence technologies.
At the Reuters NEXT conference held in New York this Tuesday, Alphabet's President and Chief Investment Officer Ruth Porat delivered a significant speech. She highlighted that deeply integrating artificial intelligence technology into the search business, which has elevated Google's reputation, is the company's most crucial strategic direction at present.
Porat told Reuters Editor-in-Chief Alessandra Galloni in an exclusive interview, "We are committed to guiding users to the next areas of knowledge they wish to explore." This strategic shift undeniably underscores Alphabet's steadfast confidence in the future development of its online search business.
As a major revenue source for Alphabet, the search-related advertising business has consistently shown strong growth. To further enhance user experience, Alphabet has employed artificial intelligence to generate summaries, providing robust support for queries that are difficult to answer directly. This innovative initiative is a testament to the company's dedication to boosting the competitiveness of its search business.
Facing competitive pressure from OpenAI, the creator of ChatGPT, Google has demonstrated formidable strength in handling complex scenarios. Although occasional "hallucination" errors may occur, Alphabet remains confident that continuous technological innovation and optimization will keep the search business vibrant and dynamic.
In addition to search, Porat revealed that Google Cloud is another significant investment area for Alphabet. She stated that the company will continue to increase its investment in Google Cloud to promote the diversification of its business development.
Notably, Alphabet has made numerous efforts to improve healthcare, with the pioneering "AlphaFold" project being particularly noteworthy. This artificial intelligence system can predict protein folding structures and is now widely used in drug development. Porat mentioned that AI not only helps restore vision for those who may lose it but also allows healthcare professionals to break free from tedious screen work, enabling them to focus more on patient care. She remarked, "Artificial intelligence is restoring the human connection between doctors and patients."
When asked if Alphabet's investment costs in artificial intelligence would continue to rise in line with industry trends, Porat stated that this technology represents a "generation's opportunity." The company disclosed plans to invest up to $50 billion in chips, data centers, and other capital expenditures by 2024. However, she emphasized that all investments will be results-oriented to ensure substantial returns.
