Google just lost $500 billion in a day, and its AI is part of the reason Alphabet stock fell about 13% on Thursday, its worst day since Google went public in 2004. About $500 billion in market value is gone, the second-biggest one-day wipeout in U.S. history behind Nvidia's $589 billion drop in January 2025. Searches grew at the fastest rate in five years. Search revenue still missed forecasts, growing 12%, down from 19% in the first quarter. A Google executive told investors that part of the reason for this is Google's AI mode, a chatbot-style search, that shows fewer ads. Meanwhile, AI spending reached $51.4 billion in the quarter and free cash flow came in at minus $9.1 billion, three times more than analysts expected. Google says spending will "significantly increase" again in 2027. Cloud, the part that sells artificial intelligence to companies, more than doubled to nearly $31 billion, per CNBC.

Google just lost $500 billion in a day, and its AI is part of the reason Alphabet stock fell about 13% on Thursday, its worst day since Google went public in 2004. About $500 billion in market value is gone, the second-biggest one-day wipeout in U.S. history behind Nvidia's $589 billion drop in January 2025. Searches grew at the fastest rate in five years. Search revenue still missed forecasts, growing 12%, down from 19% in the first quarter. A Google executive told investors that part of the reason for this is Google's AI mode, a chatbot-style search, that shows fewer ads. Meanwhile, AI spending reached $51.4 billion in the quarter and free cash flow came in at minus $9.1 billion, three times more than analysts expected. Google says spending will "significantly increase" again in 2027. Cloud, the part that sells artificial intelligence to companies, more than doubled to nearly $31 billion, per CNBC.