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Google CEO Sundar Pichai says over 25% of company’s new code generated by AI, shares rise 6%
2 min read | Updated on October 30, 2024, 12:10 IST
SUMMARY
Google CEO Sundar Pichai revealed that AI generates over a quarter of the company’s code. The stock rose by 5.89% in the after-hours trading session on October 29, following the announcement of Alphabet's third-quarter results, which showed a 15% year-on-year revenue growth to $88.3 billion.
Pichai said that Google has reduced over 90% cost of giving AI-Gemini answers in search queries in 18 months
Google CEO Sundar Pichai said that artificial intelligence (AI) is being used to generate more than 25% of the company’s new software code.
The scrip was trading at $181.22, up 5.89% in extended trading hours on Tuesday, October 29, on NASDAQ.
“Today, more than a quarter of all new code at Google is generated by AI, then reviewed and accepted by engineers. This helps our engineers do more and move faster,” Pichai said during the company’s quarterly earnings call. Pichai further highlighted Google’s AI-centric growth strategy.
Goose, the friendly AI
As per a Business Insider report, Google has launched a new AI a large language model called “Goose” just for employees.
Goose, trained on a total of 25 years of Google’s engineering expertise, is designed to help employees with building new products.
Some documents referred to it as a “descendant of Gemini,” according to the Business Insider report. The report adds that with Goose, Google brings “AI to every stage of the product development process.”
Investment in AI paying off
Investors were concerned about the billions of dollars the company has spent on AI, infrastructure, research and more.
The CEO alleviated those concerns and said that the company’s investments in AI “are paying off and driving success for the company and for our customers.”
Pichai added that while Google has reduced over 90% of the cost of giving AI-Gemini answers in search queries in 18 months, it has also doubled the size of the generative AI.
Google has, for the first time, invested in nuclear energy to handle the future load of AI’s technological progress.
Q3 results
Google’s parent company Alphabet posted a third-quarter revenue of $88.3 billion, a 15% increase from a year-ago period. Furthermore, the company reported a net income of $26.3 billion, with a $2.12 earning per share.
Pichai said using AI was “boosting productivity and efficiency” within the company, adding that it helps engineers do more and move faster.
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