Google Confirms AI‑Mode Queries Reduce Search Revenue, Triggering 15% Market Value Drop

Google’s Chief Business Officer Philipp Schindler said that the rapid growth of AI‑Mode queries has lowered monetization, contributing to a 15% decline in the company’s market value—about a $500 billion fall, the steepest since its 2004 IPO. The company has not broken out AI‑Mode revenue in detail, but the statement indicates that AI‑Mode traffic is generating less advertising revenue than traditional search results. This slump coincides with broader negative sentiment toward tech and AI in public markets and follows OpenAI’s recent valuation miss, suggesting a potential bear market for AI‑driven tech firms.