How Much of Google’s Revenue is AI related? Google Bets Big on AI as Tech Giant’s Cash Cow

Photo by Mojahid Mottakin

Google has established itself as a dominant player in the tech industry largely through its advertising business. But in recent years, the company has been transforming itself into an artificial intelligence powerhouse. Though ads still make up the majority of Google’s nearly $200 billion in yearly revenue, AI now factors into every part of its operations.

Over the past decade, Google has quietly invested heavily in AI research and development. It now provides over 200 AI-enabled products and services. The company is also pushing aggressively into new areas like self-driving cars, robotics, and healthcare that are enabled by AI.

So, how much of Google’s revenue is now AI-related?

Google is notoriously secretive about its finances, but estimates indicate the tech giant spent over $30 billion on AI just last year – more than any of its competitors. These significant investments in AI are already proving to be lucrative.

Google’s AI-driven advertising platform alone accounted for over $60 billion in revenue last year by precisely targeting users based on their interests and online activity. Google Cloud, which offers AI services to business customers, brought in $19 billion in 2020. Analysts predict that the figure could double by 2024 as demand for AI services grows.

Other initiatives like Waymo, Google’s self-driving car project, could allow the company to dominate entirely new markets in the future. Autonomous vehicles are estimated to be a $10 trillion opportunity by 2030.

Essentially, Google placed early bets on AI that now appear prescient. The technology has become essential to its core business model. As AI capabilities continue to advance, Google’s bottom line will likely improve as well.

Of course, doubts remain about public trust in AI technology. Google will need to address concerns around data privacy, algorithmic bias, and automation’s impact on jobs. But the company’s full embrace of AI means it will push boundaries to maximize the technology’s potential, for better or worse.

Yet its full-throated embrace of AI means Google will continue pushing the boundaries of what machines can do. Love it or hate it, artificial intelligence is now indispensable to Google. And it’s likely here to stay.

Explore more topics
Prolific News
Related news stories