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GOOGLEarnings2025-02-04

Pichai describes how the balance of AI computing spending has shifted over the past three years.

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Sundar Pichai · Alphabet Investor Relations · Alphabet 2024 Q4 Earnings Call

if you look at the trajectory over the past three years, the proportion of the spend towards inference compared to training has been increasing, which is good, because obviously inference is to support businesses with good ROIC. And so I think that trend is good. I think the reasoning models, if anything, accelerates that trend

Transcribed from the source video. Automatic captions, corrected for known mis-transcriptions.

Key terms

inference
Running an already-built AI model to answer a user's request.
reasoning models
AI models that spend extra computing time working through a problem step by step before answering.
ROIC
Return on invested capital: a measure of how much profit a company earns from the money it puts to work.

Educational summary of a public statement. Not investment advice.