shares of alphabet jumping today after a big Q3 beat reporting strong growth in cloud

search and YouTube but one number you might not have seen yet the company says more than a quarter of all

new code at Google is now generated by AI. For today's Tech Check, dear

Jabosa digs through the data and finds Google might not be alone.

Hi, Dee. Hey, good morning, Morgan. So coding by AI, that's not exactly a new idea but the scale

of how it's being used at Google more than 25% of all new code that is

unexpected and could have implications for the rest of Big Tech, which of course is set to report in the days and weeks ahead.

Now a lot of the focus for the hyperscalers so far has been on how they can improve efficiency

for their cloud customers, sell more Gen AI products and

services, but we're now starting to learn how much it's helping their own

internal operations. CEO Sunder Pachai said last night on the earnings call

that AI generated code is boosting

productivity and efficiency within Google. Anat Ash Kanasi in her first quarter as

CFO followed that up by telling investors that her top priority will be to drive

more cost cuts across the company. Now Alphabet's latest quarter suggests that AI

is already helping and supercharging margins in its cloud unit. A few years ago

Google Cloud wasn't even profitable. Now operating margins are 17% a big step up you can

see from a year ago. That is still a long ways from AWS's 35% operating margin in the second

quarter but it is making progress as the number three player in the space now a

relevant question for the rest of big tech is they report earnings in the coming days and weeks

will we see that same kind of efficiency gains and in which units?

Amazon's Andy Jassie said on his earnings called last quarter that

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