Google releases Gemini 4 Carbon; shares fall 10% after hours following earnings report
Google released Gemini 4 Carbon, less than a month after the previous version, Argon. Shares plunged 10% after hours following the earnings report, mainly because search business growth fell short of expectations and slowed for two consecutive quarters; of total revenue of $127.577 billion, advertising accounted for 64.28% and Google Cloud for 24.07%, with the pure search business falling below 50% for the first time.
Body · AI translation
Google has released Gemini 4 Carbon, less than a month after Argon! With this release and pace of progress, it seems RSI must have been greatly strengthened; but after today's earnings report, the stock plunged 10% in after-hours trading. The core reason is that search business growth fell short of expectations, slowing for two consecutive quarters, which looks very dim compared with the cloud business that doubled its growth. Of the total revenue of $127.577 billion, advertising accounted for 64.28% and Google Cloud for 24.07%. The cloud business has already taken nearly a quarter of the total pie, while the share of the pure search business fell below 50% for the first time.
It feels like we are back to Google's darkest moment in 2023, but today's Google is not comparable to back then in terms of model capabilities. Moreover, the growth of the cloud business and the revenue from selling TPUs look very promising. Gradually reducing the share of advertising is what Google should do most; the newly adjusted organizational structure will help Google advance its cloud business and AI progress faster. Google is a company that can both build frontier models and has the largest user reach.
At this moment, what would everyone choose?