Google struggling to make money from AI Mode
Alphabet shares fell almost ten percent after the company admitted AI Mode searches earn less than traditional search ads, even as search query growth hit a five-year high. Search revenue rose 12 percent year over year to 63.25 billion dollars, while third-quarter capital spending reached 51.4 billion dollars and net income fell to 26.17 billion dollars from 35 billion a year earlier. Google has now switched on ads alongside AI Mode searches worldwide. The disclosure matters because it shows the central economic question facing AI search: even the market leader is not yet monetizing AI answers as well as the classic results they replace.
SOURCES
- Hacker News (AI)2026-10-29 11:38
- The Decoder2026-10-29 10:16