Google's parent company, Alphabet lost around 500 billion dollars in market value on Thursday after the company's latest quarterly update rattled investors
on Wall Street. Alphabet's shares declined to a six-month low after concerns emerged over the firm's AI-generated search summaries and how that could affect its advertising business. Experts believe this has raised fresh concerns about the impact of artificial intelligence on its core search business. These concerns come amid an escalating AI spending race among the largest tech firms. As per reports, Microsoft and Amazon also outlined plans on committing substantial amounts to AI infrastructure and development recently. However, analysts are increasingly questioning whether these massive investments will result in adequate returns and whether they could weigh on the companies' ability to sustain growth as well as employee satisfaction going forward. Alphabet's AI Mode searches have lower advertising monetisation than traditional searches, according to the company's management. Google's parent company reported sales of 111.2 billion dollars for the third quarter, below analysts' projections. Ad sales from search and other channels missed estimates. Alphabet Inc's shares tumbled 13 percent and reflected its record-market value wipe out after the company reported disappointing search and advertising sales that heightened investor concerns about AI's threat to its core business.
