Alphabet unmanned investment cuts Google to prepare for artificial intelligence
Google's parent company, Alphabet, has focused on enterprise software and cloud computing in 2017, marking that Apple will gradually withdraw from drone and fiber-optic network services while cutting back on auto-driving cars.
On October 27th, Alphabet’s third-quarter earnings report showed that it cut investment in OtherBets business, including auto-driving car R&D, while doubling investment in Google’s cloud services and artificial intelligence services. .
According to foreign media reports, with the rising status of Google's cloud computing business, Alphabet has reduced its investment in OtherBets projects, including Google's fiber-optic network services, Nest smart home business, vehicle autopilot projects and two biotechnology research projects. Currently, capital expenditures on the OtherBets business have slowed down over the past two quarters. The data shows that the Other Bets project lost $865 million in the third quarter of this year, down from a loss of $980 million in the same period last year.
Google's self-driving cars have experienced a series of fluctuations, and after the volatility, it is people's speculation about its commercialization process. Is this Alphabet's move to cut investment or lose confidence in the emerging industry of autonomous driving?
In recent years, Google's self-driving cars have indeed suffered a series of accidents, and every storm has caused people to question the safety of autonomous driving. As an emerging industry, it is also an industry that requires high capital support, high talents, and high technology. The development of driverless cars requires a lot of time and capital operation. Moreover, even if the development of unmanned vehicles is successful, it is subject to traffic, regulations, traditional concepts and other factors, and may not immediately bring huge benefits. From the perspective of input and output, if Google continues to increase investment in research and development of driverless cars, it is like "moths and fires."
As we all know, the original intention of Alphabet was to separate the lucrative Google online advertising business from all other businesses with higher risks and tighter funds. This time, the adjustment of the key areas of focus is precisely in line with this development strategy. Therefore, for Google, how to stabilize its position, seek new development, and narrow the gap with competitors is the top priority of development.
Go man and machine war Since the game of Google’s artificial intelligence Go program AlphaGo and the South Korean chess player Li Shishi won the game in March 2016, the concept of “artificial intelligence†has become the biggest beneficiary, and Google’s artificial intelligence service has attracted much attention. In the past, artificial intelligence was only a smart exploration in the laboratory, and the future science and technology, artificial intelligence will be the foundation and a powerful driving force for business and social development. It can be seen that Google's investment in artificial intelligence services is a smart move.
In the field of cloud computing, the global cloud computing war is in full swing, but Google Cloud has inadvertently lost its market position and was replaced by Alibaba Cloud. It's not hard to understand that Google's Cut OtherBets project is not only because of losses, but also to quickly narrow the distance between competitors such as Amazon, Microsoft and Alibaba Cloud.
At the end of September 2016, Google announced that it would rename the brand of B2B cloud computing business and optimize enterprise applications through artificial intelligence technology. For Google, Internet search is a core business, so its cloud computing main service is to provide purely Internet-based services directly. From a cloud computing perspective, almost all Google products can be considered a typical cloud computing product.
Therefore, Google will never give up its unique cloud computing and its position in the field of artificial intelligence, and reducing investment does not mean giving up research in areas such as autonomous driving. When the time is right, Google's Other Bets project, which is gradually fading out of people's horizons, may once again fall from the sky and bring surprises to people, just like "Go-Ways and Men's Wars."
On October 27th, Alphabet’s third-quarter earnings report showed that it cut investment in OtherBets business, including auto-driving car R&D, while doubling investment in Google’s cloud services and artificial intelligence services. .
Alphabet unmanned investment cuts Google to prepare for artificial intelligence
According to the data, Alphabet is the "Umbrella company" that was reorganized by Google in 2015. It is often referred to as "New Google". In addition to Google, Alphabet includes other companies such as Google Ventures, Google Capital, Google Labs GoogleX and Nest. That is, companies with businesses that are farther away from major Internet products will be included in Alphabet, including health care businesses such as LifeSciences and Calico. Alphabet will also include Xlab and Wing, which are primarily developing drone delivery services. According to foreign media reports, with the rising status of Google's cloud computing business, Alphabet has reduced its investment in OtherBets projects, including Google's fiber-optic network services, Nest smart home business, vehicle autopilot projects and two biotechnology research projects. Currently, capital expenditures on the OtherBets business have slowed down over the past two quarters. The data shows that the Other Bets project lost $865 million in the third quarter of this year, down from a loss of $980 million in the same period last year.
Google's self-driving cars have experienced a series of fluctuations, and after the volatility, it is people's speculation about its commercialization process. Is this Alphabet's move to cut investment or lose confidence in the emerging industry of autonomous driving?
In recent years, Google's self-driving cars have indeed suffered a series of accidents, and every storm has caused people to question the safety of autonomous driving. As an emerging industry, it is also an industry that requires high capital support, high talents, and high technology. The development of driverless cars requires a lot of time and capital operation. Moreover, even if the development of unmanned vehicles is successful, it is subject to traffic, regulations, traditional concepts and other factors, and may not immediately bring huge benefits. From the perspective of input and output, if Google continues to increase investment in research and development of driverless cars, it is like "moths and fires."
As we all know, the original intention of Alphabet was to separate the lucrative Google online advertising business from all other businesses with higher risks and tighter funds. This time, the adjustment of the key areas of focus is precisely in line with this development strategy. Therefore, for Google, how to stabilize its position, seek new development, and narrow the gap with competitors is the top priority of development.
Go man and machine war
In the field of cloud computing, the global cloud computing war is in full swing, but Google Cloud has inadvertently lost its market position and was replaced by Alibaba Cloud. It's not hard to understand that Google's Cut OtherBets project is not only because of losses, but also to quickly narrow the distance between competitors such as Amazon, Microsoft and Alibaba Cloud.
At the end of September 2016, Google announced that it would rename the brand of B2B cloud computing business and optimize enterprise applications through artificial intelligence technology. For Google, Internet search is a core business, so its cloud computing main service is to provide purely Internet-based services directly. From a cloud computing perspective, almost all Google products can be considered a typical cloud computing product.
Therefore, Google will never give up its unique cloud computing and its position in the field of artificial intelligence, and reducing investment does not mean giving up research in areas such as autonomous driving. When the time is right, Google's Other Bets project, which is gradually fading out of people's horizons, may once again fall from the sky and bring surprises to people, just like "Go-Ways and Men's Wars."
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