Google's search revenue Ferrari hits an AI-powered speed bump

What happened: Google's search revenue growth slowed as it shifts to AI Overviews and AI Mode, and Alphabet lost roughly $500 billion in market value despite management efforts to reassure investors. Key numbers: Q3 capital expenditures of $51.4 billion. Search revenue growth fell from 17 percent in Q2 to 12 percent in Q3. Alphabet lost roughly $500 billion in market value. Why it matters: Google cited lower monetization in AI Mode and is expanding AI Overview ads and adding multiturn ads in the US. Analysts debated whether AI threatens search habits or whether usage remains strong.

Google's search revenue growth slowed due to AI-related factors.

Google's search revenue growth slowed due to AI-related factors. — impact context not separately stored; see What changed.