Alphabet’s DeepMind A.I. lab turns a profit for the first time ever
Demis Hassabis (CEO DeepMind) at a China 2017 event.
LONDON — DeepMind, one of the world’s premier artificial intelligence labs, has turned a profit for the first time ever, according to a filing with the U.K. company registry published Tuesday.
The London-based research firm recorded a profit of £43.8 million ($59.6 million) in 2020 after posting losses of hundreds of millions for the last several years. It reported a loss of $649 million in 2019For instance,
Turnover at DeepMind more than tripled from just £265.5 million in 2019 to £826.2 million in 2020, according to the annual results filing on Companies House. DeepMind is owned by Google parent. AlphabetHowever, they did not give a reason why the revenue jumped.
DeepMind is not able to sell products directly, and the company has not yet announced deals with any private companies. DeepMind does however sell software and other services to Alphabet’s companies, including YouTube, Google, and X (which is the moonshot)
CNBC spoke with a DeepMind spokesperson who said that company’s goal is to “power products and infrastructure that enrich lives of billions by the many collaborations our team has worked on throughout Alphabet over time.”
CNBC was told by a person familiar with DeepMind that DeepMind’s revenue growth could have been due to creative accounting. DeepMind declined to immediately comment when CNBC asked them about their claim.
The CNBC source, who requested anonymity due to the nature the conversation, stated that DeepMind doesn’t have any revenue streams. All that income depends on the amount Alphabet spends for its internal services. This can vary from one person to another.
Elsewhere, staff costs and other related costs rose modestly from £467 million to £473 million, suggesting that DeepMind’s hiring frenzy may have come to an end.
DeepMind is home to some of the best AI research scientists in the world. They can earn more than $1,000,000 annually.
DeepMind has not stated how many employees it will add in 2020. However, it claimed that the company now has more than 1,000 employees. It said that it employed around 1000 people last year.