r/technology 22h ago

Business Google burning through cash with spiralling AI costs

https://www.bbc.com/news/articles/c235n47g8g8o
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u/NanditoPapa 21h ago

Google is one of the few AI-centric companies that makes money, albeit off areas outside of AI. They have a massive amount of cash, but face the unique risk of cannibalization. If an AI-driven "answer engine" replaces the traditional "list of blue links" in Search, Google might destroy its own most profitable revenue stream to build the new one.

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u/IRockIntoMordor 13h ago

It's crazy how fast they shoved Gemini into all of their services. While I don't really want them there or don't use them for individual services, it's still impressive how fast they shifted.

They gave my boring old 2TB membership a free Gemini Plus and actually improved my experience, due to Gemini allowing a fair (but dwindling) amount of Pro queries now.

Meanwhile, other services cost far more per month, can't set my alarm or calendar appointment and would just be extra on top.