Google's AI now writes 25 percent of company code as revenue soars to $88.2 billion

Google has significantly expanded its artificial intelligence implementation, with AI now responsible for generating over a quarter of the company's new code. Sundar Pichai, the CEO, dropped this tidbit during Alphabet's latest earnings call. Of course, before any AI-generated code goes live, Google engineers conduct a thorough review process to ensure everything is correct.

On the financial front, the numbers are looking good. Google pulled in $88.2 billion in revenue, which is a solid 15 percent boost from last year. Google Services demonstrated particularly robust performance, with a 28 percent jump in operating income—even with the company investing a lot of cash into AI operations.

The company isn't slowing down on infrastructure, either. They're expanding its AI capabilities globally, from the United States to Thailand and Uruguay. On top of that, they just locked in a major deal to snag nuclear energy from small modular reactors, paving the way for 500 megawatts of new carbon-free power.

Google's AI development has notably improved efficiency, particularly its AI Overviews feature. Thanks to hardware optimization and clever innovations, they slashed the cost per query by more than 90 percent in just 18 months, all while doubling the capacity of their custom Gemini models.

Their research team over at Google DeepMind continues to advance its AI capabilities, too. Demis Hassabis and John Jumper recently got the Nobel Prize in Chemistry for their groundbreaking work on AlphaFold. Not to be outdone, Geoff Hinton, a former Google researcher, snagged a Nobel Prize in Physics.

Google's AI magic is spreading through its entire lineup, with Gemini models powering seven platforms—each with over two billion monthly users. Google Maps recently joined this exclusive group, becoming the latest platform to cross the two-billion-user mark. Plus, Google's opened up Gemini to external developers, including plugging it into GitHub Copilot, giving developers some extra tools to play with.