Alphabet (Google's parent company) has reported $76 billion in revenue for its fourth quarter that ended December 31, up 1 per cent (year-over-year), as it now bets big on AI.
The company said it would take a charge of between $1.9 billion and $2.3 billion related to the layoffs of 12,000 employees. Google Cloud brought in $7.32 billion in revenue, a 32 per cent increase from the year-ago quarter.
"Our long-term investments in deep computer science make us extremely well-positioned as AI reaches an inflection point, and I'm excited by the AI-driven leaps we're about to unveil in Search and beyond," said Sundar Pichai, CEO of Alphabet and Google.
"There's also great momentum in Cloud, YouTube subscriptions, and our Pixel devices. We're on an important journey to re-engineer our cost structure in a durable way and to build financially sustainable, vibrant, growing businesses across Alphabet," Pichai said.
Beginning in January, Alphabet will now update its segment reporting relating to certain of Alphabet's AI activities. DeepMind, previously reported within Other Bets, will be reported as part of Alphabet's corporate costs, reflecting its increasing collaboration with Google Services, Google Cloud, and Other Bets.
Google's Search and Other revenue was $42.60 billion, down 2 per cent from the year prior. Google's Other Revenues, which includes hardware and non-advertising YouTube revenue, came in at $8.8 billion, up 8 per cent.
"We have significant work underway to improve all aspects of our cost structure, in support of our investments in our highest growth priorities to deliver long-term, profitable growth," said Ruth Porat, CFO of Alphabet and Google.