Google Parent Company Alphabet's AI Lab 'DeepMind' Achieves First Profit Turnaround

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] DeepMind, the AI developed by Alphabet that played against 9-dan Lee Sedol, reportedly achieved a profit for the first time in history last year, CNBC reported on the 5th (local time).

According to the report, DeepMind recorded a profit of ?43.8 million (approximately 70.9 billion KRW) in 2020.

During the same period, DeepMind's revenue increased more than threefold from ?265.5 million to ?826.2 million (approximately 1.3375 trillion KRW). However, the reason for this increase was not explained.

Headquartered in London, DeepMind had been operating at a loss since its acquisition by Google in 2014, including a ?64.9 million loss in 2019.

In this regard, an industry insider in the AI sector suggested that the sharp increase in revenue last year might be due to accounting adjustments.

The insider stated, "I don't think DeepMind has many revenue sources," adding, "Since all income comes from internal service fees paid by the parent company Alphabet, it can be adjusted arbitrarily."

DeepMind sells software and other products only to Alphabet subsidiaries such as Google and YouTube, and does not engage in direct transactions with other private companies or consumers.

DeepMind employs some of the world's top AI researchers, including experts whose annual salaries exceed one million dollars, leading to significant labor cost burdens, according to analysis.

DeepMind did not disclose how many people it hired in 2020, but it is known that the number of DeepMind employees was about 1,000 last year.

This content was produced with the assistance of AI translation services.