Google Warns AI Disrupts Search Advertising Model

Alphabet said during its recent annual report call that Google’s push into AI, including Gemini’s 750 million monthly active users, is creating structural and strategic challenges. The company is doubling capital expenditures to about $185 billion to build AI compute capacity, risking excess infrastructure and potential cannibalization of search ad revenue. Google also warns quantum-era cybersecurity threats could undermine current AI systems.