Google began
in January 1996 as a research project by Larry Page and Sergey Brin when they were
both PhD students at Stanford
University in Stanford,
California
While
conventional search engines ranked results by counting how many times the
search terms appeared on the page, the two theorized about a better system that
analyzed the relationships between websites. They called this new technology PageRank; it determined a
website's relevance
by the number of pages, and the importance of those pages, that linked back to
the original site.
A small search
engine called "RankDex" from IDD Information Services designed by Robin Li was, since 1996,
already exploring a similar strategy for site-scoring and page ranking. The
technology in RankDex was patented in July 1999and used later when Li founded Baidu in China Page and
Brin originally nicknamed their new search engine "BackRub", because
the system checked backlinks to estimate the importance of a site. Eventually,
they changed the name to Google, originating from a misspelling of the word
"googol", the
number one followed by one hundred zeros, which was picked to signify that the
search engine was intended to provide large quantities of information.
Originally, Google ran under Stanford University's website, with the domains google.stanford.edu
and z.stanford.edu.
The domain
name for Google was registered on September 15, 1997, and the company was incorporated on September
4, 1998. It was based in the garage of a friend (Susan Wojcicki)
in Menlo Park,
California. Craig Silverstein, a fellow PhD student at Stanford, was hired as
the first employee.
In May 2011,
the number of monthly unique visitors to Google surpassed one billion for the
first time, an 8.4 percent increase from May 2010 (931 million). In
January 2013, Google announced it had earned US$50 billion in annual
revenue for the year of 2012. This marked the first time the company had
reached this feat, topping their 2011 total of $38 billion.
In March 1999, the company moved its offices to Palo Alto,
California, which is home to several prominent Silicon Valley technology
startups. The next year, against Page and Brin's initial opposition
toward an advertising-funded search engine, Google began selling
advertisements associated with search keywords. In order to maintain an
uncluttered page design and increase speed, advertisements were solely
text-based. Keywords were sold based on a combination of price bids and
click-throughs, with bidding starting at five cents per click.
This model of selling keyword advertising was first pioneered by
Goto.com, an Idealab
spin-off created by Bill Gross.
When the company changed names to Overture Services, it sued Google over
alleged infringements of the company's pay-per-click and bidding patents.
Overture Services would later be bought by Yahoo! and renamed Yahoo! Search
Marketing. The case was then settled out of court; Google agreed to
issue shares of common stock to Yahoo! in exchange for a perpetual license.
In 2001, Google received a patent for its PageRank mechanism. The
patent was officially assigned to Stanford University and lists Lawrence Page
as the inventor. In 2003, after outgrowing two other locations, the company
leased an office complex from Silicon Graphics at 1600
Amphitheatre Parkway in Mountain
View, California. The complex became known as the Googleplex, a play on the
word googolplex, the number one
followed by a googol zeroes. The Googleplex interiors were
designed by Clive
Wilkinson Architects. Three years later, Google bought the property
from SGI for $319 million. By that time, the name "Google" had
found its way into everyday language, causing the verb "google" to be added
to the Merriam-Webster
Collegiate Dictionary and the Oxford
English Dictionary, denoted as "to use the Google search engine
to obtain information on the Internet."