advertising is ~76% of Alphabet revenue. Cloud is 12% and growing 30%+, but margins arent comparable yet — search basically prints money, cloud is still scaling to prove it.
But google search has subpar quality for many queries compared to ChatGPT and other AI providers. Even if they did fix the quality issue, nobody has yet got a good way to integrate paid ads within an LLM response.
But google search has subpar quality for many queries compared to ChatGPT and other AI providers. Even if they did fix the quality issue, nobody has yet got a good way to integrate paid ads within an LLM response.
I'd say those are 2 huge risks to their business.