Google CEO Says AI Investments Are ‘Paying Off’ [Video]

After Google parent Alphabet (GOOGL) reported third-quarter earnings that topped analysts’ expectations, CEO Sundar Pichai and other executives told investors the tech giant is seeing strong gains from demand for artificial intelligence (AI), sending shares up over 5% in extended trading Tuesday.

Pichai told investors the tech giant’s investments in AI “are paying off and driving success,” with strong performance in Google’s search and cloud divisions driven by AI demand.

Google Cloud’s third-quarter revenue surged a whopping 35% year-over-year to $11.4 billion, led by growth in its AI infrastructure and generative AI solutions, along with other core cloud products.

Pichai added he believes the company could be “uniquely positioned to lead in the era of AI,” with its focus on the emerging tech. “For all these AI features, it’s just the beginning. You’ll see a rapid pace of innovation and progress here,” he said.

Pichai noted the company has seen use of Google Search rise …