Goldman Sachs: Google's AI strategy may shift towards scaled commercialization, with cloud business becoming the core growth engine.

Goldman Sachs stated in a research report that the recent adjustments in the AI management team at Googles parent company, Alphabet, may indicate the company's strategy is shifting from "research-driven" to a greater emphasis on scalable commercialization. Demis Hassabis, head of Google DeepMind, will focus more on AGI, scientific research, and long-term AI development, while Koray Kavukcuoglu will take over the development and commercialization of Gemini products. Goldman Sachs believes that this is not Google abandoning its competitive edge in cutting-edge models, but rather reallocating resources to areas where it holds long-term advantages. In the future, Google will maintain its cutting-edge AI research capabilities, and Goldman Sachs expects Gemini 4 to be launched later this year or early next year. Moreover, an increase in the consumer adoption rate of Gemini is expected to strengthen Google's distribution advantages, while Google Cloud will become a significant vehicle for monetizing AI infrastructure. Goldman Sachs anticipates that the compound growth rate of Google Cloud revenue may approach triple digits over the next 4 to 6 quarters, with GAAP operating margin expected to exceed 30%. Goldman Sachs believes that Google is evolving into a scaled AI platform company: consumer AI broadens distribution, cloud services meet infrastructure demands, and cutting-edge research increasingly serves the overall business strategy.