Software

Alphabet’s DeepMind AI lab makes a profit for the first time

The DeepMind AI research lab, part of the Alphabet holding, made a profit for the first time. This became known from the company’s report published on Tuesday in the register of companies in the UK.

Deepmind

Deepmind

The London-based research firm reported £ 43.8 million ($ 59.6 million) in 2020 profit after reporting hundreds of millions of dollars in losses over the past few years. DeepMind’s turnover has more than tripled in a year, from £ 265.5 million in 2019 to £ 826.2 million in 2020, according to reports filed with the UK Companies House. However, DeepMind did not reveal the exact reason for such a sharp rise in revenue.

DeepMind does not sell its products directly to consumers, and has not announced any deals with private companies outside of Alphabet. At the same time, it supplies software and provides services to the holding companies, including Google, YouTube and X (moonshot factory).

A DeepMind spokesperson told CNBC that the company “Supports products and infrastructure that enrich the lives of billions of people through the many collaborative projects she has worked on with Alphabet over the years.”

“I don’t think DeepMind has many or any revenue streams, – a source told CNBC, asking to remain anonymous. – So all this income depends on how much Alphabet pays for internal services, and this can be done in a completely arbitrary manner. “

DeepMind did not elaborate on how many people it added to its team in 2020, but said it now has over 1,000 employees. Last year, its staff numbered about 1000 people, that is, it has grown insignificantly. Also, personnel costs and other related expenses increased slightly – from £ 467 million to £ 473 million. DeepMind employs the world’s leading artificial intelligence researchers, whose annual salaries exceed $ 1 million.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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