Google has acknowledged that its AI Mode generative search has affected its traditional search advertising business: AI-generated content has narrowed the commercial monetization space of search results, making ad monetization more difficult. In Q3 2026, Google's search advertising revenue rose 12% year-over-year to $63.4 billion, missing Wall Street expectations. Following the earnings release, Alphabet's stock price plunged, marking the largest single-day market value loss in the company's history. Meanwhile, Google's AI infrastructure investment continues to climb amid mounting cost pressure, and the real-world challenges of commercializing generative AI are becoming increasingly evident. How to build a sustainable profit mechanism while scaling AI applications has become a pressing issue for Google and the entire AI industry.