Google announces the expansion of ads in AI Mode into international markets, as growth in its core search advertising business slows (Lauren Forristal/TechCrunch)

Google is expanding advertisements within its AI-powered search experiences into international markets to seek new revenue opportunities, according to TechCrunch. This move comes as Alphabet reports that its latest LLM-powered search system, "AI Mode," currently generates less money than its traditional search engine.

Alphabet's Q3 results showed search revenue rose 12 percent year-over-year to $63.25 billion, a decrease from the 14.5 percent growth reported in the previous year's third quarter. The Register reported that Alphabet shares fell by nearly ten percent on Wednesday following the announcement. During an earnings call, chief business officer Philipp Schindler attributed the slowdown to lower monetization in AI Mode, though he argued the system will pay off by capturing high-value commercial intent through upper funnel queries.

The company reported a net income of $26.17 billion for the quarter, down from $35 billion in the same period last year. This decline follows $51.4 billion in spending during Q3, with approximately two thirds of those funds directed toward servers, networking equipment, and datacenter builds.

Brief written by urgent.news from Techmeme, The Register, The Register Science — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.