Ruth Porat: And then on your second question, when we talk about being focused on delivering sustainable financial value, that obviously means that expense growth cannot be growing ahead of revenue growth. And we’re focused on revenue upside, as well as durable changes to the expense base to really ensure we have the capacity to invest in that growth. And clearly, the emphasis of revenue growth, there’s a lot that’s exciting ahead of us within Google Services, all of the AI advancements that are improving advertiser ROI and the search user experience. And more broadly, as we’ve talked about across the key product areas. And then very importantly, on expense growth, we have a very strong commitment to, we can’t keep emphasizing, durably reengineer our cost base, and that will benefit all of the segments across Alphabet.
And the key components, slowing the pace of hiring as a starting point, product prioritization across Google, as Sundar said, is key, improving economics in hardware as we focus intently on the Pixel line and cost structure, then using AI and automation to improve productivity for operational tasks, as well as for the efficiency of our technical infrastructure, where we have a number of work streams. Managing our spend, as I said, with suppliers and vendors and then optimizing how and where we work, and you saw part of that with the real estate consolidation, given the slower headcount growth. All of those not only benefit Google Services, but many of those similarly drive greater efficiency across Alphabet. And so, as we’ve said, in Cloud, we remain very focused on the path to profitability.
That’s a revenue and margin driver. And then with Other Bets, we’re similarly focused on investing sustainably. And so, to go back to it, it’s the durable nature of change in some of the elements that I’ve talked about here where work is ongoing, you start to see impacting in 2023 but to really get full year run rate and the benefit of it, there is work ongoing. And that’s why we’ve emphasized this notion of it comes in and then really you see the run rate in 2024.
Douglas Anmuth: That’s helpful. Thank you, both.
Operator: Our next question is from Eric Sheridan of Goldman Sachs. Your line is open.
Eric Sheridan: Thank you so much. Maybe two, if I could. Sundar, for you, continuing on the AI theme, how do you think philosophically about capturing the opportunity set that you see in front of you, given all the investments you’ve made over the last five-plus years that we’ve been talking about going back to a lot of Google I/Os versus potentially disrupt the user experience or the monetization arc in your existing product set and striking the right balance between the opportunity set and being disruptive to yourself when you think about looking forward over the next couple of years? And then, Ruth, maybe just following on some of the questions and debates on the cost structure. Obviously, Other Bets is an area where the losses continue to be sort of higher than what some of us think from the outside looking in.
But then you showed some improvement in the losses in the Cloud division this quarter. How should we be thinking about the rationalization of the cost structure and aligning costs with opportunity sets across some of the divisions of Alphabet when you think for the medium to long term? Thanks so much.
