# Alphabet shares fall as AI Mode searches bring in less advertising revenue

- URL: https://talkfuse.com/story/google-struggling-to-make-ai-mode-searches-pay/
- Published: 2026-10-29T01:12:24+00:00
- Updated: 2026-10-29T02:47:15+00:00
- Original publisher: The Register
- Original article: https://www.theregister.com/ai-and-ml/2026/10/29/google-struggling-to-make-ai-mode-searches-pay/5306181
- Topics: AI, Geopolitics, Politics, Technology

## Key points

- Alphabet says AI Mode searches earn less from ads than traditional searches.
- Search revenue rose 12 per cent to $63.25 billion.
- Google plans significantly higher capital spending in 2027.

## Summary

Alphabet shares fell by almost 10 per cent after the company said AI Mode searches currently generate less advertising revenue than conventional Google searches. The gap matters because Google is investing heavily in AI infrastructure, while its search business remains a major source of income.

Alphabet’s search revenue rose 12 per cent year on year to $63.25 billion in the third quarter, while net income fell to $26.17 billion from $35 billion a year earlier. The company spent $51.4 billion on infrastructure and has begun showing ads alongside AI Mode searches worldwide, after testing them in the US. Google also faces limited Cloud capacity, and plans to spend significantly more in 2027 despite keeping its 2026 capital spending forecast at $195 billion to $205 billion.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.