AI is changing how Google and Meta earn ad revenue
Business
AI is seriously changing how Google and Meta make money from ads.
As more people use AI chatbots like Claude instead of regular searches, Google's search division grew 12% to $63.4 billion.
Meanwhile, Meta (think Facebook and Instagram) saw its ad revenue jump 26% to $63.2 billion, thanks to users spending more time on their platforms.
Alphabet down $500B while Meta pivots
Alphabet took a hit, losing $500 billion in market value after a major stock dip.
In contrast, Meta's bet on AI paid off with higher advertiser conversions and spending.
Now, both companies are pivoting (Google is focusing on its booming cloud business, while Meta is working on new AI-powered subscription services) to keep up with the fast-changing tech scene.