Google's AI-boosted searches aren't paying: Search revenue growth slows from 17% to 12%
gaganghotra_ · x · 2026-11-04
The Verge reports a paradox from Alphabet's Q3 earnings: AI is driving the fastest search-query growth in five years, but it isn't translating into revenue growth.
- Search revenue growth slowed to 12% YoY, down from 17% the previous quarter
- Paid clicks growth slowed from 13% to 8%
- Alphabet plans $200B in infrastructure spend this year, largely for AI; shares fell 14% post-earnings
- CBO Philipp Schindler cited currency effects and advertiser spending shifts as main drivers, but AI Mode queries also contributed
The piece calls it "the first major disruption to Google's core business in decades," with investors questioning the costs and returns of its AI ambitions.
More from Venture
- Dev clothing brand ships an MCP store: agents fill carts, humans approve payment via Stripe link — NearbyCarry9815 · 2026-11-04
- AI startup names are getting wild: Sweet Tooth AI just raised $10M — TarlonKhoubyari · 2026-11-04
- INSIDE drops biggest episode yet: Runway's robotics push, Dragonfly's $4B fund, Polymarket visit — damianplayer · 2026-11-04
- a16z Backs Phaze, a Remote Desktop Built for Giving AI Agents Full Workstations — a16z Newsletter · 2026-11-04
- Gary Marcus predicts tech stock crash as AI companies lose their 'free ride' — GaryMarcus · 2026-11-04
- Claude skill engineers viral reels: one AI-made video hits 125K views in 12 hours — PrajwalTomar_ · 2026-11-04