Google "suffers" due to its own artificial intelligence: company loses $500 billion

Google’s AI-powered search service has impacted the company’s traditional advertising revenue. As a result, the market value of its parent company, Alphabet, dropped by more than $500 billion in a single day.

According to reports, Alphabet generated $127.6 billion in revenue between July and September 2026—a 25% increase compared to the same period the previous year. However, revenue from the advertising segment fell short of analysts' expectations.

Philipp Schindler, the company’s Chief Business Officer, noted that the "AI Mode" feature—which provides conversational answers to user queries—is reducing revenue from advertisements typically displayed alongside traditional search results. Following the release of the financial report, Alphabet’s stock price fell by more than 12%, and the company’s market value dropped from $3.97 trillion to $3.46 trillion.

Nevertheless, Google continues to pursue its strategy of developing an AI-driven search system. Kim Scott, a former head of the company’s advertising business, believes that Google is taking a long-term view in its development of these new technologies.