Google value plunges by $500bn as its own AI search hits ad sales
Google spooked investors so badly that its stock hit a six-month low, after it revealed its AI own search summaries were affecting ad revenue.
Google-owner Alphabet lost just over $500bn (£374bn) in value on Thursday after it revealed its own artificial intelligence (AI) summaries were hitting search advertising revenue.
Chief business officer Philipp Schindler said Google's "AI mode", where it answers questions conversationally, was eating into the money it makes from ads which appear next to results to traditional search questions.
Yet, Schindler said he felt "very good about our trajectory" with an AI-focused version of the search engine.
That number shows that Amazon is not only spending more money than it makes, but that spending has increased six-fold over the span of three months.