I should have been more precise, it depends on what you mean by "search" -- traditional search is still a huge cash cow, but AI search is not as lucrative, which is what the exec called out in that Ars link. The problem is that AI search is rapidly replacing traditional search.
Personally I have doubts that AI search would ever be as lucrative as traditional search, which I expanded on in that comment I linked.
Schindler said, according to Ars’ source, that “each AI Mode query currently makes less than a traditional search,” coupling “that with the claim that monetization will improve over time” [1]. Ars speculated that the slowdown to double-digit growth is “driven by more consumers using AI chatbots to find answers.” But none of that says Google is losing its user base.
I use Kagi and am skeptical of the debt-fuelled AI build-out. But 12% growth amidst a strategic pivot is unabashed good news. The stock sank because of the capital expenditure, not this.
[1] https://247wallst.com/investing/2026/10/29/google-admits-its...
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