Google value plunges by $500bn as its own AI search hits ad sales

Google-owner Alphabet lost just over $500bn (£374bn) in value on Thursday after it revealed its own artificial intelligence (AI) summaries were hitting search advertising revenue.

Chief business officer Philipp Schindler said Google's "AI mode", where it answers questions conversationally, was eating into the money it makes from ads which appear next to results to traditional search questions.

Yet, Schindler said he felt "very good about our trajectory" with an AI-focused version of the search engine.

Google's role in answering the world's questions has been challenged by the AI boom, with millions of people using programs such as ChatGPT and Claude instead.