alt Hacker NewsSchindler 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...
Right, I don't necessarily think Google will lose its userbase -- although ChatGPT and Claude and heck, even Muse, are formidable threats -- but I do think its ability to monetize each user will drop sharply as users shift to AI search.
Like, in the theorycrafting in my comment that I linked before, I didn't assume any change in userbase; just how lucrative (or not) each step in a chat-based journey could be versus a search-based one.