With AI, Google risks undermining its own business model

Alphabet, Google's parent company, is heavily investing in AI, but this is disrupting its core search business model. The new AI Mode allows users to ask questions like a chatbot, leading to quicker answers but less time spent on Google's site, reducing ad revenue. This shift has caused investor anxiety, resulting in a significant drop in stock value. Despite a 12% revenue growth in advertising, concerns remain about the sustainability of AI investments, with Alphabet planning to raise $85 billion for data centers and chips. The intertwining roles of Google as both an investor and competitor in AI further complicate its financial landscape.