Alphabet’s shares fell almost 10% after the company acknowledged that AI-powered searches earn less than its traditional ad-based search. Google search revenue rose 12% year over year to $63.25 billion in the third quarter, slower than the prior year’s 14.5% growth, and chief business officer Philipp Schindler attributed the slowdown to lower monetization in AI Mode. Alphabet spent $51.4 billion on infrastructure in the quarter and reported net income of $26.17 billion, down from $35 billion a year earlier, while keeping its $195-$205 billion capital expenditure forecast for the year.
