Google Expands AI Mode Ads to 10 Countries, Q3 Revenue $63.35B

Key Takeaways

• <ul><li>Google Search revenue grew 12% to $63.35 billion, slowing from 17% growth in Q2</li><li>Alphabet total revenue rose 25% to $127.6 billion in Q3</li><li>Google Cloud sales jumped 103% to $30.71 billion</li><li>Google admits AI Mode queries earn less than traditional search ads</li><li>AI Mode queries are three times longer than traditional searches on average</li><li>Alphabet shares fell over 10% after the Q3 earnings results</li><li>AI spending contributed about 1.1 percentage points to quarterly US GDP growth</li><li>Nvidia reported record revenue of $96.2 billion with data center revenue at $89 billion</li><li>Alphabet plans a $1.5 billion AI investment in China focused on NLP and computer vision</li><li>ASMPT revenue surged 49% driven by strong AI technology demand</li></ul>

Google expands AI Search ads worldwide as core ad growth slows

Google is expanding ads in its AI-powered Search to international markets. This move comes as growth in its core search advertising slows. Search revenue grew 12 percent year over year in the third quarter. That is down from 17 percent growth in the second quarter. Google says early results show the new ad formats are working well.

Google Search Growth Slows Again, AI Mode Is Partly Why

Google Search revenue growth slowed for a second straight quarter. The company reported a 12 percent year over year increase. Currency movements, retail changes, and lower AI Mode monetization were cited as causes. Google is scaling ads in AI Mode across nine countries including Australia and Canada. The company also launched multiturn ads in the U.S. that appear in follow-up queries.

Google Starved Out Publishers With AI Search. Now, Its Pivot Is Blowing Up in Its Face.

Alphabet shares fell over 11 percent after Google revealed its AI search features earn less money than its traditional search ad model. Google Search revenue grew 12 percent year over year, which was lower than the 14.5 percent growth from the same period last year. The company has been developing AI features in response to the rise of chatbots like ChatGPT. Now Google is earning less from AI Mode than from the traditional search it planned to replace.

Google is taking AI Mode search ads global as search revenue growth slows

Google is expanding AI Mode search ads to Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines and Singapore. It plans to add Brazil, Mexico and the United Kingdom later. The company also launched multiturn ads in the U.S. for follow-up queries. Alphabet's Search and other revenue rose 12 percent to $63.35 billion. Total revenue grew 25 percent to $127.6 billion. Google said queries in AI Mode are three times longer than traditional searches on average.

Google Admits Its AI Search Makes Less Money Than Regular Search

Google's executives admitted that AI Mode queries currently make less money than traditional search queries. Search and other revenue was $63.35 billion in the third quarter, up 12 percent from a year earlier. Growth was about 17 percent in the second quarter, so Search was nearly flat quarter to quarter. CEO Sundar Pichai said AI Mode queries are three times longer than traditional searches. Google also surpassed 50 billion visual searches per month.

Google expands AI Mode search ads to 10 countries

Google is expanding ads in its AI Mode Search experiences to 10 countries beyond the United States. The company also launched multi-turn ads in the U.S. that appear in follow-up questions. Search revenue grew 12% to $63.35 billion, slowing from 17% growth in the previous quarter. Google says sponsored product listings in AI Mode show click-through rates similar to organic listings.

Analysts debate Google Search momentum amid AI shift

Alphabet shares fell 10% after Q3 results showed Google Search and other revenue growing at just 12%, down from 17% in Q2. Management blamed foreign exchange rates and one-off ad spending dips in Asia-Pacific. The FIFA World Cup also boosted Q2 advertising spending. Analysts said Google Search growth is slowing, with some calling it a secular decline. Alphabet's total revenue rose 25% to $127.6 billion, and cloud sales jumped 103% to $30.71 billion.

5 fastest-growing AI stocks to watch now

AI stocks surged over 80% by early October 2026, but rising interest rates and spending concerns have caused a recent selloff. Broadcom's AI chip revenue more than tripled to $16.7 billion, with total revenue up 86% to $29.6 billion. Nvidia reported revenue of $96.2 billion, with data center revenue at $89 billion, up 117%. The list focuses on companies already profiting from AI demand with earnings growth above 30%.

Nvidia and Micron face risk if AI spending slows

Nvidia reported record revenue of $96.2 billion with data center revenue of $89 billion, but its growth depends on continued AI investment from tech giants. Micron posted record fiscal fourth-quarter revenue of $54.2 billion and full-year revenue of $133.2 billion, driven by high bandwidth memory demand. Both stocks could face pressure if cloud providers delay data center projects or if competition increases. Nvidia has a market cap of $5.25 trillion and Micron has $1.05 trillion.

AI investment drives half of US GDP growth since 2025

Private-sector AI spending contributed about 1.1 percentage points to quarterly real GDP growth from Q1 2025 through Q3 2026, according to EY-Parthenon chief economist Gregory Daco. The contribution peaked at about 1.6 percentage points in Q1 2026. AI-related investment includes spending on software and R&D, power facilities, data centers, and information-processing equipment. Information-processing equipment and software made up the largest share of recent contributions.

AI spending drives half of US GDP growth since 2025

Private sector spending on artificial intelligence has driven about half of US economic growth since early 2025. Gregory Daco, chief economist at EY-Parthenon, shared this finding. AI-related spending added an average of 1.1 percentage points to economic growth.

ASMPT sales surge 49% on AI demand

ASMPT reported a 49% jump in quarterly revenue to HK$5.25 billion, or about $669 million. The company expects fourth quarter revenue between $670 million and $730 million. Strong demand for AI technology drove the sales increase. A chip unit in the company missed its estimate.

Alphabet plans $1.5 billion AI investment in China

Alphabet, the parent company of Google, plans to invest $1.5 billion in AI research and development in China. The focus areas include natural language processing and computer vision. Some analysts are skeptical because China has stricter rules on AI technology. Alphabet believes the investment can drive growth despite regulatory challenges.

Silicon Motion revenue jumps 131% on AI storage demand

Silicon Motion reported third quarter 2026 revenue of $560.2 million, up 131.5% from a year earlier. CEO Wallace Kou said growing demand for NAND flash controllers caused a supply shortage and higher prices. The company guides fourth quarter revenue of $588 million to $616 million. It expects over 100% revenue growth for 2026 compared to 2025.

Mercedes-Benz launches AI tool for faster car development

Mercedes-Benz introduced PLM.AI, an AI-native system for product development. The system could cut development time by 30% and reduce physical testing by half. The company is investing about half a billion euros in the project. CONTACT Software and Siemens are strategic partners helping build the PLM.AI platform.

UNC-Chapel Hill Ends AI Tool for Rating Admission Essays

UNC-Chapel Hill stopped using Slate's Reader AI tool to score application essays. The university said students now use AI writing tools too often, which made the AI scores less useful. Officials want human reviewers to focus on each student's real experiences and unique voice.

Nightfood Switches to AI Chip Inspection for Food Safety

Nightfood, formerly Nightfood Holdings, is now focused on AI-powered inspection tools for the food industry. The company expects this move could bring up to $2.25 million in monthly sales. Several major food companies have shown interest in the new technology.

Roblox Accused of Scraping 3D Models for AI Training

Roblox is accused of collecting about 145.5GB of 3D models from online communities. A web crawler reportedly downloaded files from Open3DLab, SFMLab, and SmutBase. The crawler identified itself as being connected to Roblox and AI foundation model research.

Sources

• Google expands AI Search ads globally as core ad growth slows
• Google Search Growth Slows Again, AI Mode Is Partly Why
• Google Starved Out Publishers With AI Search. Now, Its Pivot Is Blowing Up in Its Face.
• Google is taking AI Mode search ads global as search revenue growth slows
• Google Admits Its AI Search Makes Less Money Than Regular Search
• Google Takes AI Mode Search Ads to 10 Countries as Search Revenue Growth Slows
• Is Google Losing Search Momentum To AI? Analysts Weigh In As Management Blames Currency Headwinds, FIFA World Cup
• 5 Fastest-Growing AI Stocks to Buy Now
• AI Spending Is Nearing $1 Trillion Annually. These 2 Stocks Are Most at Risk If It Slows.
• AI investment accounts for half of U.S. GDP growth since start of 2025, Daco says
• AI investment accounts for half of U.S. GDP growth since start of 2025, Daco says
• ASMPT Sales Jump 49% on AI Demand as Chip Unit Misses
• Alphabet spells out more AI capex, China+1 doesn’t add up
• Silicon Motion Sales Jump 131% to $560M as AI Storage Grows
• Mercedes-Benz introduces AI-native backbone for product development
• UNC-Chapel Hill to Stop Using AI to Rate Admissions Essays
• Dealroom.co | Nightfood pivots to AI chip inspection, eyes up to $2.25M in monthly sales
• Roblox Accused of Scraping 145GB of 3D Models for AI Training, Including Adult Content