Google Cloud chief details how tech company is monetizing AI
Thomas Kurian, Google Cloud CEO, speaks at a Cloud Information Conference in 2019.
Michael Short | Bloomberg | Getty Images
Google’s On Tuesday, the cloud chief Thomas Kurian explained how the technology giant made money from various artificial intelligence services to generate income.
Speaking at the Goldman Sachs Commacopia in San Francisco and Kurian, Kurian said, “We have already made billions of using AI,” he said.
Kurian said Google Cloud’s customer demand has grown faster than the income.
“Our accumulated business is currently 106 billion dollars – it is growing faster than our income.” He said. “More than 50% will turn into income in the next two years.”
In the second quarter, the Google Parental alphabet in July reported 13.62 billion dollars for cloud computing work, which was an increase of 32% compared to the previous year. Alphabet’s net income increased by 20% to 28.20 billion dollars compared to the previous year. Google’s cloud unit delays the cloud units of Microsoft and Amazon, growing faster than them.
What Kurian said about how Google Cloud made money from AI:
Consumption
Kurian, some people by paying to Google through consumption of the AI infrastructure purchased by corporate customers, he said.
“GPU, TPU or a model, you pay with the coin – so you pay with what you use,” he said. The coins represent the pieces of text that an AI models work when they produce or interpret language.
Some people use customer service systems that pay with what Kurian calls “deviation rates”. These rates are priced based on things such as tool value of customers – working time, scalability, AI properties and safety.
Google Cloud also provides tools such as the “deviation indicator panel” that customers can use to monitor and manage vehicle interactions.
Google won $ 10 billion last month Cloud contract Meta It takes six years. Meta relied greatly on Amazon web services for cloud infrastructure, but Microsoft also uses Azure.
Subscription
Some customers pay for cloud services through subscriptions.
“You pay per monthly fee per user – for example, agents or work area, Kur Kurian said, referring to the company’s own subscription layers with various storage options and Gemini products with Google Workspace Productivity Suite with a few subscription stretches.
Google One, a popular personal cloud storage subscription, offers users a basic monthly service for $ 1.99 per month. Earlier this year, the company is a new The “Google AI Ultra” subscription layer offers special access to the most “state -of -the -art” AI products with 30 Terabytes storage areas for $ 249.99 per month.
Kurian gave an example of Google Cloud’s cyber security subscription layers and said, “We have seen a great growth in this.”
Uppling
Kurian said UPSWiring’s another important aspect of Google Cloud’s strategy.
“We are moving forward because they use people more than one version to another because we have higher quality models and higher priced layers.” He said.
Customers said that after using Google’s AI services, they were hugging the company using more products.
“This guides to spend more than customers who have signed a commitment or contract to spend more than they contact, which provides more income increase.”
Kurian says he captures new customers faster.
Kurian, “In the first half of the year, we saw 28% of the new customer wins 28% of the quarter growth.”
“Sales to existing customers are always easier than selling to new customers than to sell, so it helps us to increase the cost of sales.” He said.
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