Google Cloud's AI Dominance: 60% of AI Startups Use Their Technology

Google Cloud CEO: 60% of AI Startups Use Our Tech | PYMNTS.com

Google Cloud's CEO says his company has several paths to monetizing artificial intelligence (AI). "We have seen 10-times growth year over year of people using our clusters," Thomas Kurian said Tuesday (Sept. 10) at a Goldman Sachs tech conference. "Sixty percent of all AI startups use our clusters for training and inference," added the executive, whose comments were reported by Seeking Alpha. "We monetized our security, which is powered by our AI capabilities," Kurian said. "We monetize based on the value we are creating for users. We are capturing customers faster, doing larger deals, and customers have increased their adoption of our products by 30%." "We have been patient with AI, and because of that, we have found many ways to monetize AI," he added. Kurian also argued that selling AI solutions requires a different approach than past technologies, requiring companies to sell towards specific departments rather than an IT division. "You don't sell an AI solution the same way as other products," Kurian said. "We sell around a Solution." As PYMNTS wrote recently, a number of tech giants are embedding AI into their core products and services to create new opportunities for revenue while also improving user experiences. "Integrating AI across various sectors marks a shift in how companies monetize technology and engage with users," that report said. "From search engines and productivity tools to freelance marketplaces, AI is becoming a key differentiator and revenue driver. This trend is reshaping business models and consumer interactions while also raising questions about the future of work and the implications of AI deployment." Among the more notable Big Tech AI efforts are Google's integration of AI capabilities into its search engine, Microsoft's AI assistant Copilot, and Amazon's use of AI for personalized product recommendations and search results. "Companies are increasingly focusing their AI spending on developing lightweight and compressed models, which are crucial for efficient deployment in resource-constrained environments," Jiahao Sun, CEO at Flock.io, told PYMNTS. Sun also highlighted AI's capabilities. "Advancements in AI, particularly in large language models [LLMs] and machine learning [ML], are poised to revolutionize the commerce sector by automating a wide range of processes," he said. This automation, Sun added, could streamline operations throughout companies, enhancing things from inventory management to customer service.

Google Cloud CEO details paths of monetization for AI

Google (NASDAQ:GOOG)(NASDAQ:GOOGL) Cloud CEO Thomas Kurian highlighted some of the paths his company has made to monetize artificial intelligence, during his presentation at Goldman Sachs Communacopia and Technology conference on Tuesday afternoon. "We have seen 10-times growth year over year of people using our clusters," Kurian said. "Sixty percent of all AI startups use our clusters for training and inference." Kurian said they have monetized compute instances on a consumption basis and have established a price platform on a token basis. Google has built its data center clusters using either its own processors or those from Nvidia (NVDA). AWS (AMZN) also uses a combination of its own chips, as well as Nvidia and AMD. "We monetized our security, which is powered by our AI capabilities," Kurian said. "We monetize based on the value we are creating for users," he added. "We are capturing customers faster, doing larger deals, and customers have increased their adoption of our products by 30%," Kurian said. "We have been patient with AI, and because of that, we have found many ways to monetize AI." He said selling AI solutions is different from selling technology in the past. Rather than go through a company's IT department, you might instead approach the head of customer service or head of finance as AI solutions and agents are geared for specific tasks. "You don't sell an AI solution the same way as other products," Kurian said. "We sell around a solution."