Q1: Google’s Earnings Are Up, AI Is Growing – And All Controversies Are Neatly Ignored

The alphabet executives spent on Thursday night at the Q1 call on Thursday night and raising questions about Orientist of Antitruist’s verdict against Google Last week, he declared it an illegal monopolist on the web advertising market.

I’m just kidding.

Neither the case of AD Tech antitrust against Google nor to search for the antitrust case – hearing about medication in the latter is not currently ongoing – it has not been resolved during the call. The leadership did not bring them and there were no investors issues.

We don’t.

Also unmarked: Google’s Wholesale reversal on third -party cookies In Chrome just a few days ago, which caused emotional decline in the entire industry.

Instead, AI occupied the center stage, although he was not yet the main driver of revenue – still.

Alphabet revenues in the first quarter were reached by $ 90 billion, of which $ 34.5 billion was a net income, an increase of 46% compared to one year.

Google Ad Network’s job has decreased by $ 157 million compared to the year, but has already been in a constant fall in the last few years. And that little loss in ads served on the whole web is more than compensating for a gain of more billion dollars for Google search, Google Cloud and Google’s subscription and segment of the device.

AI examination

Google’s AIOS (AIOS), which are generative answers that show many traditional search queries, now has 1.5 billion users per month, said Sundar Pichai CEO.

However, it is not clear what that number means. Pichai later noted that the users of Theseuio “interact with AO -Dying, very engaged in a way,” which implies “1.5 billion” is the number of users who click or communicate with these answers, not just that they are exposed.

Nonetheless, that’s a large number. And Aios is not just Google’s venture guided by AI.

“All 15 of our products with half a billion users are now using twin models,” Pichai told investors. Other Google Products, such as Google’s tablets, headsets, watches and technologies for cars, are in the process of “upgrades” on the twin, as Pichai said.

Aios is sharing the “approximately the same foot” as the traditional examination of the search inquiry, according to Google’s main business officer Philippu Schindler, who “gives us a strong base on which we can innovate even more.”

Google has reported on the use and bribery of AI still enigmatic. For example, an analyst of JP Morgan Internet Equity, Doug Anmuth, asked “how we should think” 1.5 billion AIO users. He did not receive clarity about what the metric conveys.

Anmuth then pressed Schindler for more information about Aio Monetization. “I know you pronounced a renovation approximately the same rate,” Anmuth said, “but what does it mean in terms of clicks and conversion speed?”

Schindler would only reiterate that AIO advertising positions are brought up to approximately the same speed as a traditional search. “I don’t think this is the moment to get into the details of clicking and conversion and so on,” he said.

Google’s newborn baby

But although AI is still a (relatively) child, many Google products have now reached adulthood. Google Search has celebrated its 25^th Two years ago, Gmailov 20 was the anniversary of the 20th. Last year, and on Thursday, Pichai mentioned that the first video of YouTube was transferred almost 20 years ago.

The maturity of these products, many of which began to uncertain with the uncertain, and may have seemed to be a long -term centers, is a proof of Google’s portfolio of new products and services, which are just reaching a child.

Aios, for example, is one year old. Pichai and other Google leaders have noticed this fact several times during the call.

And there is a “search circle”, a feature on Android devices that allows people to search everything that is visible on the screen. It was just launched last year, and visual tests have already increased by 5 billion since October, Pichai said.

Not to mention Waymo, Google’s Autonomous Division Division, which started delivering paid driving in Q4 2024, and now on a quarter million driving a week.

I Wall Street is not difficult to accept Google’s investments in these companies now, since Google’s profitability and profit margin of record high for Google services (which includes ads) and cloud segments, as Evercore Mark Mahaney noted, who also asked Waym’s long -term monetary plans.

“This is probably the first question I have made on our earnings at Waym, so thank you,” replied Pichai Mahaney.

Waymo, Pichai said, is not yet committed to a certain approach to revenues.

From Google’s perspective, investors should consider their 20-year services, take a deep breath and ask us about Waymo and AIOS revenue in the decade.