DeepMind, Still Running Separate from Google in the UK, Lost $162m in 2016 (Oct 6, 2017)
Quartz reports that Alphabet’s DeepMind subsidiary, which is still registered as a separate private company in the UK and therefore has to report its own financials, lost $162 million in 2016, on revenues of just $40 million, all of which came from Google. It’s a quirk of accounting that DeepMind is still reporting as a separate company, but it gives some insight into the cost of running such a business, which is focused on cutting-edge AI work, much of which is not ready for direct monetization in revenue generating products. Given that Alphabet as a whole spent over $15 billion on Research and Development in the past year, this is a tiny fraction of the total, and an operation the company can easily afford to keep going along these lines. Much of the losses, incidentally, stem from the $137 million the company spent on staff and related costs, of which I would guess a big chunk is stock-based compensation, which runs at $2 billion per quarter for Alphabet as a whole and $100-150 million per quarter in the Other Bets segment. And of course there are big chunks of Google itself working on AI as it relates to specific products too, so this is far from the scale of Alphabet’s overall investment in AI, which is increasingly filtered into everything Google does.
via Quartz
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