Alphabet focused on future AI investment in its Q3 earnings announcement, after it recorded an 11 per cent year-on-year rise in revenue driven by advertising gains.

CEO Sundar Pichai stated it was continuing to focus on making AI more helpful for everyone, with exciting progress and lots more to come.

On its earnings call, CFO Ruth Porat said the company expected to make “elevated levels of investment” for the remainder of this year and into 2024, complementing capital expenditure in Q3 which was “overwhelmingly” driven by AI-compatible infrastructure including servers and data centres.

She explained the company was focused on durably re-engineering its cost base to create investment capacity “to support our growth priorities, most important of which is AI”.

Alphabet has attempted to integrate AI into products including search, YouTube and the latest Pixel devices, with products similar to its chatbot Bard.

Revenue hit $76.7 billion from $69 billion in Q3 2022, with Google advertising rising from $54.5 billion to $59.6 billion.

YouTube revenue increased from $7.1 billion to $8 billion.

Cloud revenue increased 22 per cent to $8.4 billion, which Porat said reflected the impact of customer optimisation efforts as its clients attempt to lower costs.

Net income was $19.7 billion compared with $13.9 billion.