This uptick indicates an improvement in the quality of those models, according to Seeking Alpha, which itself cited a paywalled report by The Information Tuesday (Jan. 20).
This could add more revenue from Google Cloud’s core business of server sales, as the money customers shell out for AI often leads to more spending on other Google products, the report added, citing a source with knowledge of Google’s sales.
The report notes that Google sells access to its AI models via Google Cloud via an application programming interface (API). Requests sent to the Gemini API more than doubled between March and August of last year, the report added, citing internal data from Google.
The Information adds that a major challenge still facing Google is convincing business customers to pay for the complex software it has created to run on top of its AI models. Sources said this software gives Google a way to boost the profit margins on its artificial intelligence business.
In other Google AI news, PYMNTS wrote last week about the company’s new effort to embed Walmart and Sam’s Club’s massive inventory directly into Gemini using Google’s Universal Commerce Protocol.
Speaking with investors, Walmart Executive Vice President of AI Acceleration, Product and Design Dan Danker said he “very clearly sees this as a growth opportunity,” noting that the agentic-focused partnership will continue to allow Walmart to “reach the customer where they are as commerce shifts.”
“There are so many shopping occasions that don’t begin as a shopping occasion, and this allows us to serve those moments,” Danker said.
The report notes that for decades, eCommerce adhered to a familiar architecture: static search bars direct customers to lists of products, and the shopper then navigates brand websites and marketplaces to carry out a purchase. But this model is increasingly at odds with modern digital behavior, where users expect fluid, intuitive interfaces that don’t react to queries, but rather anticipate needs. The partnership between Walmart and Google aims to invert this paradigm, PYMNTS wrote.
“Instead of typing keywords into a website, consumers will engage Gemini with natural language prompts, for example, ‘help me build a fall camping kit under $300,’ or, ‘I just spilled wine on my couch, what will get it out?’ Gemini will then tap into Walmart’s product catalog, pricing, and availability in real time, offering personalized recommendations and, crucially, the option to purchase without leaving the chat interface,” the report said.
