[AINews] Google admits AI Mode hurts Search revenue; -15% $500B drop worst since 2004 IPO. AI Bear Market coming?

Google chief business officer Philipp Schindler said strong growth in AI Mode queries hurt results because AI Mode monetizes at lower rates than traditional search. Together with other weak earnings results, the news set off steep declines across tech stocks, framed by the newsletter as a 15%, roughly $500B drop for Google, its worst since its 2004 IPO. It matters because it is a rare admission from Google's own leadership that AI summaries can cannibalize the search business that funds the company, raising doubts about the economics of AI search and about broader AI market sentiment.

• Latent Space Podcast2026-10-31 05:00