Can artificial intelligence (AI) turn a profit? Is the current level of investment in AI overblown? Those who closely monitor AI developments may find themselves pondering these questions. However, Alphabet, Google's parent company, delivered a compelling answer in its latest fourth-quarter earnings report. The report disclosed that Alphabet's annual revenue exceeded $400 billion for the first time, propelled primarily by the integration of AI technology and the swift growth of the Google Cloud business.

In the fourth quarter, Google Cloud's revenue soared to $17.7 billion, marking a remarkable 48% year-on-year increase. This surge was fueled by robust demand for enterprise AI infrastructure, AI solutions, and essential cloud services. Furthermore, Alphabet has outlined plans to allocate between $175 billion and $185 billion in capital expenditures by 2026, with a keen focus on AI computing infrastructure. This move further highlights the significant commercial value and vast market potential of AI technology.