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Google’s parent company Alphabet is transforming the future with AI. From enhancing search to pioneering medical breakthroughs like AlphaFold, the tech giant is committing $50 billion to reshape industries while balancing innovation with results.
AI at the Core of Alphabet's Search Strategy
Parent company Alphabet, which has been at the forefront of innovations like quantum computing and self-driving cars, is putting its most money on something that's closer to home: search engines.
Ruth Porat, president and chief investment officer of Alphabet, stated at the Reuters NEXT conference in New York on Tuesday that the application of artificial intelligence to the search industry, which brought Google fame, is the company's biggest bet.
"We're meeting people where they want to be next," Porat said in an interview with Reuters Editor-in-Chief Alessandra Galloni.
Alphabet has introduced AI-generated summaries to questions that do not have a clear solution as part of its endeavors; the company earns more than $300 billion a year from ads related to search.
Alphabet Tackles AI Hallucinations in Search Evolution
Google had to tread dangerous ground in this move, which followed competition from OpenAI (the inventor of ChatGPT), because AI sometimes makes up information in what are called "hallucinations."
Porat, who was the longest-serving CFO at Google and Alphabet, stated that search will continue to evolve. She also mentioned that Google Cloud is an important investment.
Porat, who has battled breast cancer twice, also highlighted the several initiatives Alphabet has undertaken to enhance healthcare, Yahoo Finance points out.
Healthcare Breakthroughs With AlphaFold and AI
She mentioned the company's groundbreaking work with "AlphaFold," an AI system that can predict protein folds. Isomorphic Labs is using this technology to uncover new drugs. She claimed that AI can protect the eyes of those who are at risk of losing them and allow doctors and nurses to devote more time to actually caring for patients.
“It can restore humanity into the doctor-patient relationship,” she remarked, referencing the hopes of her own doctor.
When asked whether Alphabet's investments in AI will be priced similarly to the industry's soaring trends, Porat responded that AI was a "generational opportunity."
Alphabet’s $50 Billion Commitment to AI Growth
The business has informed analysts that it plans to spend $50 billion on capital expenditures in 2024, including semiconductors, data centers, and more. On the other hand, Alphabet would stake its claims on proof.
"We need to generate a return," she stated.
