Google has an IBM problem: AI answers are cannibalizing its core search ad business
DavidLinthicum · x · 2026-10-30
Alphabet's recent stock drop isn't just about one earnings report — it reflects a structural dilemma. The more Google pushes AI answers, AI summaries, and AI-native search, the less users need traditional search, undermining the advertising model that made Google one of history's most profitable companies. The author draws a parallel to IBM's painful transition during the rise of cloud computing: for incumbents, the strategically right move can still hurt the business in the short term.
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