Google Search is now less than half of Alphabet’s revenue
https://www.kadoa.com/companies/insights/google-search-below-halfHere's a graph with revenue in dollars by segment:
Second, is the geometric growth of Cloud cannibalizing their search teams, leading to less effort being put into sales. And so it’s not so much that demand is tapering off as that supply is being constrained as an opportunity cost. That $1m in salary nets more profit from Cloud than from Search.
If I type in the name of a company so that I can navigate to their website, and I have to scroll past my whole viewport of other companies bidding to be placed above where I'm trying to go, I learn it's faster for me to just type the website address into the bar instead of going via Google.
They designed a UX that made my life easier and caused me to form a habit, and then broke that UX for money causing me to form a new habit.
It's just one example of dozens, but the consequence is that I see 95% fewer Google ads than I used to. My guess I am on the leading edge (along with many others on this forum) of a wave of change of user behavior that spells pessimism for Google search revenue.
Why does it even need to keep going up anyway? Is 60 billion not enough?
And Google knows it, so why not squeeze the current customers, whatever model AI takes it’s unlikely to be a word matching auction, this model is dead, grab the cash and go.
Search was $63.4B "Everything else" was $64.2B, out of which GCP was $30.7B
Is AI on the 33.5B remaining post GCP? or within the 30.7 of GCP?
Search no longer works and you are killing your most important product with AI that nobody wants. If search worked like in 2010, no one would use AI answers.
I remember 10 years ago that Google was extremely paranoid about having the whole company propped up on one revenue tent-pole.
Alphabet Announces Third Quarter 2026 Results [pdf]