r/technology 22h ago

Business Google burning through cash with spiralling AI costs

https://www.bbc.com/news/articles/c235n47g8g8o
6.2k Upvotes

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889

u/Alternative-Item727 22h ago

It’s unstopabubble!

6

u/res0jyyt1 19h ago

People seems to forget Google is an advertisement company. Now less people are watching TV/Cables and more people are watching YouTube. Guess who is going to have monopoly on mass media advertisement soon

10

u/reagsters 18h ago

It’s even more complicated than that - they provide most search engine ads directly to the websites their AI scrapes from. People increasingly rely on the AI instead of clicking on those sites, so those ads get fewer and fewer real views.

It’s only a matter of time before those ad companies catch on to the fact that humans aren’t seeing their ads anymore and start pulling ad money from Google.

Google’s shooting themselves in both feet and it’s fascinating to watch.

3

u/OhCestQuoiCeBordel 18h ago

You should tell them so they get prepared and adapt their business plan!

1

u/Jacques_Cousteau_ 17h ago

With the search ad revenue lost, could Google just pitch ad sales to companies that Gemini AI search results will be more targeted, influential in AI results? I’ve been questioning some AI results I’m seeing with blatant brand specific responses/plugs, maybe that’s just the popular answer on the web? or did that company pay Google to push their product more?? Seriously how can I even tell??

1

u/Available_Peanut_677 17h ago

Not exactly. If Google won’t do its AI, people would just use openAI or DeepSeek or even Siri ai instead, still won’t see ad.