They are making less off of AI overviews than traditional ads, but their AI buildout costs are increasing Not but, it’s and Their ad revenue plummeted, because the AI summary costs money each search and also leads to fewer clicks (because people often take the AI answer), meaning Google ads, the core of their business, are not being seen on web sites Also, they continue to invest crazy amounts in AI data centers (despite being significantly behind in LLM quality) But that’s really just a piece of the puzzle, the simple answer is they are not only going all in on AI, they’re also destroying the one massive profit center that keeps all their other projects afloat You love to see it