Tiago Bianchi
Research expert covering internet & gaming in Latin America and Spain
Alphabet Inc. - statistics & facts
A tech name of superlatives in terms of reach and impact, Alphabet Inc. is the world's fourth-largest company based on a market value, registering a record annual revenue of 307 billion U.S. dollars in 2023. Established in 2015 as part of a corporate restructuring, the conglomerate acts as parent and holding company of Google, as well as for many other enterprises previously owned by or tied to Google. Alphabet’s power and influence also bear the responsibility of leading the online search giant through the artificial intelligence (AI) market trend.
Alphabet also holds a diverse portfolio of other subsidiaries, collectively listed as Other Bets. This segment spans an array of early-stage businesses, from internet and TV services, licensing and R&D services, autonomous driving technologies, and Nest-branded hardware, as well as capital investment funds via GV (Google Ventures) and CapitalG. Revenues from Other Bets have been increasing slowly but steadily since 2016 and suddenly almost doubled between 2021 and 2023, and surpassing 1.5 billion U.S. dollars in the most recently measured period.
Along with Google’s release of its new AI assistant Gemini as an answer to OpenAI’s chatbot in early 2024, Alphabet spent over 45.4 billion U.S. dollars on research and development in 2023, almost 6 billion U.S. dollars more compared to the previous year. While acquiring a significant number of artificial intelligence startups, the conglomerate also moved the DeepMind AI project from Google’s Other Bets financial reporting to Alphabet’s corporate costs, reflecting its increasing collaboration with other segments.
As part of restructuring plans, the number of full-time Alphabet employees fell for the first time in a decade. Google’s corporate parent is likely to increase automation in 2024, stepping up efforts to integrate artificial intelligence in marketing and advertising, its primary revenue streams and areas that will be most affected by the new trend. Indeed, global generative AI revenue is forecast to exceed 300 billion U.S. dollars by 2026. As companies race to be part of the new tech currents, Alphabet hopes its venture into AI can be swift as ABC.
Google and Alphabet’s other bets
Most of Alphabet’s revenues are generated through Google, a company whose brand was the second highest evaluated worldwide in 2023, at a value of 577.68 billion U.S. dollars. Google accounts for the majority of Aphabet’s revenue and products, including ads, Android, Chrome, hardware, Google Cloud, Google Maps, Google Play, Search, and YouTube. In 2023, these avenues generated revenue of approximately 305.6 billion U.S. dollars, accounting for over 99 percent of Alphabet’s total annual revenue.Alphabet also holds a diverse portfolio of other subsidiaries, collectively listed as Other Bets. This segment spans an array of early-stage businesses, from internet and TV services, licensing and R&D services, autonomous driving technologies, and Nest-branded hardware, as well as capital investment funds via GV (Google Ventures) and CapitalG. Revenues from Other Bets have been increasing slowly but steadily since 2016 and suddenly almost doubled between 2021 and 2023, and surpassing 1.5 billion U.S. dollars in the most recently measured period.
The AI paradigm
The sheer impact of ChatGPT, the AI-powered chatbot that delivers search query results in a conversational format, not only shook the standards on Google’s turf but also drove changes to the search giant’s own parent company. Despite Alphabet presenting some of its highest earnings registered to date, Google’s ad revenues for 2023 were rather disappointing, especially on its network websites advertising, while its search engine registered some of its lowest market shares in desktop devices in more than 10 years.Along with Google’s release of its new AI assistant Gemini as an answer to OpenAI’s chatbot in early 2024, Alphabet spent over 45.4 billion U.S. dollars on research and development in 2023, almost 6 billion U.S. dollars more compared to the previous year. While acquiring a significant number of artificial intelligence startups, the conglomerate also moved the DeepMind AI project from Google’s Other Bets financial reporting to Alphabet’s corporate costs, reflecting its increasing collaboration with other segments.
As part of restructuring plans, the number of full-time Alphabet employees fell for the first time in a decade. Google’s corporate parent is likely to increase automation in 2024, stepping up efforts to integrate artificial intelligence in marketing and advertising, its primary revenue streams and areas that will be most affected by the new trend. Indeed, global generative AI revenue is forecast to exceed 300 billion U.S. dollars by 2026. As companies race to be part of the new tech currents, Alphabet hopes its venture into AI can be swift as ABC.
