Google owner admits ‘AI mode’ has hurt traditional search as sales and profits undershoot expectations

Alphabet’s share price fell just over 12 percent on Thursday, and UK startup Nscale is banking on a troubled US data centre project to underpin its planned $35bn IPO. Plus, we look at what’s next for the ECB now that its president Christine Lagarde announced she’s stepping down.

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The FT News Briefing is produced by Sonja Hutson, Saffeya Ahmed, and Josh Gabert-Doyon. Our editor is Marc Filippino. Our video producers are Zachary Alfred and Dennis Golin. Our show is mixed by Sam Giovinco and Alex Higgins. Additional help from Gavin Kallmann, Michael Lello, Vanessa Brown, Peter Barber and David da Silva. Our executive producers are Charles Bell and Topher Forhecz. Flo Phillips is the FT’s global head of audio. The show’s theme music is by Metaphor Music.

Read a transcript of this episode on FT.com

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","freeContentEncoded","textContent","published","strategy","curl-ready","locked","deletedAt","isSyncedFromOwnBlog","original","duplicatesCount",0,"duplicateVersion","originalArticleId","errorsCount","appearance","color","backgroundColor","shortSummary","Google's parent company, Alphabet, saw its stock price drop over 12% on Thursday. This decline occurred as the company admitted that its AI initiatives have negatively impacted traditional search operations, contributing to sales and profits falling short of expectations. Additionally, UK startup Nscale is planning a $35 billion IPO based on a US data center project, and the European Central Bank faces a leadership transition as Christine Lagarde announced her departure.","summary","Alphabet's stock experienced a significant drop of over 12 percent following an admission by the Google owner that its AI mode has negatively impacted traditional search. This contributed to sales and profits missing expectations. In parallel, UK startup Nscale is preparing for a $35 billion IPO linked to a US data center project. The article also notes the upcoming departure of Christine Lagarde as president of the European Central Bank.","bullets",[384,385,386,387,388],"persons",[383],"places",[381,382],"words",205,"sentiment",-2.5,"subject","economy","meta",{"_343":344,"_345":346,"_347":348},"eventId","9a966c44c065d69de7c20192822221bfee4ba3c302a16bfe39c6af935266da32","nostrRootEvent","event",{"_24":277,"_308":331,"_150":96,"_203":332,"_312":313,"_237":333,"_315":334},"authorNPub","markdown","Google owner admits ‘AI mode’ has hurt traditional search as sales and profits undershoot expectations\n\nAlphabet’s share price fell just over 12 percent on Thursday, and UK startup Nscale is banking on a troubled US data centre project to underpin its planned $35bn IPO. Plus, we look at what’s next for the ECB now that its president Christine Lagarde announced she’s stepping down.\n\n**Mentioned in this podcast:**\n\n* [Alphabet shares tumble in $500bn rout](https://www.ft.com/content/eb386156-5bf9-4edd-80f2-803fdee1e33d?accessToken=zwAAAaIi1GfplNO5KUuRDu5BO9O93gVp9IU5udPuhsS2H-RGftOPGJwI3yiK_9PrOGFWW_lO3dOA8oA_3uHjPdPy3p88MpBOh9O7wlVDACXyqwE.MEUCIQCTfptZcpPISYntlhh1mjoa3g6HxEZajv0OSQGMtt_QEQIgSVZwVMNDn0Bf_KARrNJmOPbLhMU516inUsUkdvr2i-0&segmentId=7d4bcc2e-e664-92ba-62e3-5590579f1902)\n* [Inside the make-or-break AI mega-project behind Nscale’s $35bn IPO](https://www.ft.com/content/ee86c4b6-1fe4-467e-8f18-9c08df288aff?accessToken=zwAAAaIi1GfplNO5KUuRDu5BO9O93gVp9IU5udPuhsS2H-RGftOPGJwI3yiK_9PrOGFWW_lO3dOA8oA_3uHjPdPy3p88MpBOh9O7wlVDACXyqwE.MEUCIQCTfptZcpPISYntlhh1mjoa3g6HxEZajv0OSQGMtt_QEQIgSVZwVMNDn0Bf_KARrNJmOPbLhMU516inUsUkdvr2i-0&segmentId=7d4bcc2e-e664-92ba-62e3-5590579f1902)\n* [Christine Lagarde to step down as ECB president in February](https://www.ft.com/content/b9294b91-0eee-413b-bdde-0569f48539b9?accessToken=zwAAAaIi1GfplNO5KUuRDu5BO9O93gVp9IU5udPuhsS2H-RGftOPGJwI3yiK_9PrOGFWW_lO3dOA8oA_3uHjPdPy3p88MpBOh9O7wlVDACXyqwE.MEUCIQCTfptZcpPISYntlhh1mjoa3g6HxEZajv0OSQGMtt_QEQIgSVZwVMNDn0Bf_KARrNJmOPbLhMU516inUsUkdvr2i-0&segmentId=7d4bcc2e-e664-92ba-62e3-5590579f1902)\n\nWant to get in touch? Email us at [podcasts@ft.com](mailto:podcasts@ft.com)\n\nNote: The FT does not use generative AI to voice its podcasts\n\nThe FT News Briefing is produced by Sonja Hutson, Saffeya Ahmed, and Josh Gabert-Doyon. Our editor is Marc Filippino. Our video producers are Zachary Alfred and Dennis Golin. Our show is mixed by Sam Giovinco and Alex Higgins. Additional help from Gavin Kallmann, Michael Lello, Vanessa Brown, Peter Barber and David da Silva. Our executive producers are Charles Bell and Topher Forhecz. Flo Phillips is the FT’s global head of audio. The show’s theme music is by Metaphor Music.\n\n[Read a transcript of this episode on FT.com](https://www.ft.com/content/fc70d720-0954-41ee-bc40-064189288f90)\n\n[View our accessibility guide](/accessibility#podcast-transcriptions).\n\n[Reuse this content (opens in new window)](https://enterprise.ft.com/en-gb/services/republishing/republish-content-request?ft-content-uuid=4ca8c7a2-1b83-4bfd-92d4-a17261d0b325) CommentsJump to comments section\n\nLatest from FT News Briefing\n\nFT News Briefing podcast\n\n13 min listen\n\n[The winners and losers in the UK Budget](/content/d43884af-cf02-4be0-a7e6-a2bf332e45ac?syn-25a6b1a6=1)\n\n[![](https://images.ft.com/v3/image/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2Fuploaded-files%2F1920x1080_MASTER%2520NO%2520LOGO%2520FTNB-b2f01ebf-d2da-4a72-86f2-3215d7142524.jpeg?source=next&fit=scale-down&dpr=2&width=340)](/content/d43884af-cf02-4be0-a7e6-a2bf332e45ac?syn-25a6b1a6=1)\n\nFT News Briefing podcast\n\n12 min listen\n\n[What a local ceasefire means for the Russia-Ukraine war](/content/77d0bba5-264d-4c2e-bdbc-d8493b1b4a25?syn-25a6b1a6=1)\n\n[![](https://images.ft.com/v3/image/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2Fuploaded-files%2F1920x1080_MASTER%2520NO%2520LOGO%2520FTNB-b2f01ebf-d2da-4a72-86f2-3215d7142524.jpeg?source=next&fit=scale-down&dpr=2&width=340)](/content/77d0bba5-264d-4c2e-bdbc-d8493b1b4a25?syn-25a6b1a6=1)\n\nFT News Briefing podcast\n\n13 min listen\n\n[Anthropic details ‘existential risks to humanity’ in IPO filing](/content/d3a3ee17-7f3f-48b8-af0b-c69a92361a84?syn-25a6b1a6=1)\n\n[![](https://images.ft.com/v3/image/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2Fuploaded-files%2F1920x1080_MASTER%2520NO%2520LOGO%2520FTNB-b2f01ebf-d2da-4a72-86f2-3215d7142524.jpeg?source=next&fit=scale-down&dpr=2&width=340)](/content/d3a3ee17-7f3f-48b8-af0b-c69a92361a84?syn-25a6b1a6=1)\n\nFT News Briefing podcast\n\n11 min listen\n\n[Update: Lula pulls off election win in Brazil](/content/c222b937-6351-4d21-b7cc-ae6fe21693f4?syn-25a6b1a6=1)\n\n[![](https://images.ft.com/v3/image/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2Fuploaded-files%2F1920x1080_MASTER%2520NO%2520LOGO%2520FTNB-b2f01ebf-d2da-4a72-86f2-3215d7142524.jpeg?source=next&fit=scale-down&dpr=2&width=340)](/content/c222b937-6351-4d21-b7cc-ae6fe21693f4?syn-25a6b1a6=1)\n\nFT News Briefing podcast\n\n11 min listen\n\n[Serbia’s strongman leader voted out](/content/2d9a682d-fd71-4d76-878b-fe7980f6988a?syn-25a6b1a6=1)\n\n[![](https://images.ft.com/v3/image/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2Fuploaded-files%2F1920x1080_MASTER%2520NO%2520LOGO%2520FTNB-b2f01ebf-d2da-4a72-86f2-3215d7142524.jpeg?source=next&fit=scale-down&dpr=2&width=340)](/content/2d9a682d-fd71-4d76-878b-fe7980f6988a?syn-25a6b1a6=1)\n\nFT News Briefing podcast\n\n23 min listen\n\n[The Bethlehem Project: Voters feel anxious and uncertain as US midterms near](/content/44077dde-2c7d-43ca-b724-53451f1c0d22?syn-25a6b1a6=1)\n\n[![](https://images.ft.com/v3/image/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2Fuploaded-files%2F1920x1080_MASTER%2520NO%2520LOGO%2520FTNB-b2f01ebf-d2da-4a72-86f2-3215d7142524.jpeg?source=next&fit=scale-down&dpr=2&width=340)](/content/44077dde-2c7d-43ca-b724-53451f1c0d22?syn-25a6b1a6=1)\n\nFT News Briefing podcast\n\n32 min listen\n\n[Martin Wolf on the US midterms: What’s at stake for the world?](/content/bdfebbea-061d-48cb-b95e-d0e4698e91b7?syn-25a6b1a6=1)\n\n[![](https://images.ft.com/v3/image/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2Fuploaded-files%2F1920x1080_MASTER%2520NO%2520LOGO%2520FTNB-b2f01ebf-d2da-4a72-86f2-3215d7142524.jpeg?source=next&fit=scale-down&dpr=2&width=340)](/content/bdfebbea-061d-48cb-b95e-d0e4698e91b7?syn-25a6b1a6=1)\n\nFT News Briefing podcast\n\n15 min listen\n\n[US prepared for protracted stalemate with Iran](/content/c999863a-ba2e-48ee-9f3f-85b486124736?syn-25a6b1a6=1)\n\n[![](https://images.ft.com/v3/image/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2Fuploaded-files%2F1920x1080_MASTER%2520NO%2520LOGO%2520FTNB-b2f01ebf-d2da-4a72-86f2-3215d7142524.jpeg?source=next&fit=scale-down&dpr=2&width=340)](/content/c999863a-ba2e-48ee-9f3f-85b486124736?syn-25a6b1a6=1)\n\nFollow the topics in this audio\n\n\\* \\[Artificial intelligence\\](/artificial-intelligence)\n\nAdd to myFT\n\n\\* \\[European Central Bank\\](/stream/60da3242-e372-44d6-8b46-b497ef106d88)\n\nAdd to myFT\n\n\\* \\[Alphabet Inc\\](/stream/6656b3e4-1a78-4960-90a0-8d422450f9a6)\n\nAdd to myFT\n\n\\* \\[FT News Briefing\\](/ft-news-briefing)\n\nAdd to myFT\n\nComments\n\nComments have not been enabled for this article.","freeMarkdown","kind1EventId","kind30023EventId","e7c9d8a525c6af1866fa292f8eec8a0018d1c0a7fa497fd0763a22cf71842914","kind30023",{"_24":287,"_308":309,"_150":310,"_203":311,"_312":313,"_237":314,"_315":316},"publishedToNostr","htmlContentKind30023","

Google owner admits ‘AI mode’ has hurt traditional search as sales and profits undershoot expectations

Mentioned in this podcast:

Want to get in touch? Email us at podcasts@ft.com

Note: The FT does not use generative AI to voice its podcasts

Read a transcript of this episode on FT.com

View our accessibility guide.

Reuse this content (opens in new window) CommentsJump to comments section

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","pubDate",["D",1793336400000],"modifiedAt",["D",1793338848000],["D",1793372460640],["D",1793382447469],"storyId","01a18dec-7955-143c-71a1-07e24474483b","tweets",[],"localization","likes","zaps","reposts","comments","sig","212f5f2a6052e3bd3fc5a59d04a7061f4b6d1a2810b7d4a8ff810882d8894be24c5d66ab499ae42b15302534d04a2ffdd6b85eb4808bf73581b9b3072d6ff8d1",30023,[317,318,319,320,321,322,323,324],"pubkey","1b8a5d0d6828627d029d64c64f2a258dd7aaea30b8dd4c5d55fee74f337ea3b3","Alphabet's stock experienced a significant drop of over 12 percent following an admission by the Google owner that its AI mode has negatively impacted traditional search. This contributed to sales and profits missing expectations. In parallel, UK startup Nscale is preparing for a $35 billion IPO linked to a US data center project. The article also notes the upcoming departure of Christine Lagarde as president of the European Central Bank.\n - Alphabet's share price fell over 12 percent.\n - The company acknowledged that its AI mode has negatively affected traditional search.\n - Sales and profits did not meet expectations.\n - UK startup Nscale is planning a $35 billion IPO based on a US data center project.\n - ECB President Christine Lagarde announced her resignation.\nhttps://foxvector.com/articles/d7365c76-898a-4670-996f-64d957f81bc8","created_at",1793336400,[329,330],[36,223],[327,328],[40,230],[326,218],[260,224],[325,48],[154,313,48],"client","d","published_at","1793336400","r","https://foxvector.com/articles/d7365c76-898a-4670-996f-64d957f81bc8","09e72dd8f1fea0271a89159b20c828e0d00fedea6b5988ad5470bfa6ad0f80294123249af9798a0659dda453bd03b8e6a6cea079bacea9fc6fb0241771971c21",[335,336,337,338,339],"Alphabet’s brutal day on the stock market\nRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.\n\n\nnostr:naddr1qvzqqqr4gupzqxu2t5xks2rz05pf6exxfu4ztrwh4t4rpwxaf3w4tlh8fuehaganqqjxgdenxc6kxdek95urjwrp956rvdes95unjdnx95mrgepex5mkvwp3vf3nsj582lp ",1793372460,[272,223],[40,230],[340,341,48,342],[325,48],[154,313,48],"a","30023:1b8a5d0d6828627d029d64c64f2a258dd7aaea30b8dd4c5d55fee74f337ea3b3:d7365c76-898a-4670-996f-64d957f81bc8","mention","type","bee:get-index-of-articles","schedule",{"_24":349,"_47":-5,"_350":351,"_203":-5,"_352":353,"_354":96,"_355":348,"_356":12,"_152":92,"_272":48,"_357":-5,"_358":-5,"_359":-5,"_360":92,"_244":245,"_361":362,"_51":363,"_364":365,"_366":12,"_367":368,"_53":369,"_370":-5,"_371":92,"_205":171,"_372":373,"_374":-5,"_375":376,"_377":-5,"_378":96,"_379":-5,"_380":-5},"dataSourceUrl","https://www.ft.com/artificial-intelligence","9a4a2679-adbf-42ce-88c8-35e1024b38f0","npub","npub1rw996rtg9p386q5avnry72393ht6463shrw5ch24lmn57vm75wesf63wfr","jobId","5dd45dbf-5398-4c9c-bd07-91e4e3a20578","order","rssUrl","system","userRef","xHandle","xUserId","autosign","syncedAt",["D",1779913532338],["D",1779913532338],"frequency","daily","isOwnBlog","nextRunAt",["D",1793372394044],["D",1793285994641],"xUserName","autopublish","sourceVariant","rss","systemVariant","scheduleVariant","scraping-bee-default-proxy","retryArticlesIds","frequencyMultiplier","xUserProfilePicture","ownershipConfirmedAt","US","UK","Christine Lagarde","Alphabet's share price fell over 12 percent.","The company acknowledged that its AI mode has negatively affected traditional search.","Sales and profits did not meet expectations.","UK startup Nscale is planning a $35 billion IPO based on a US data center project.","ECB President Christine Lagarde announced her resignation.","userSubscription","theme","light","currentUser","currentUserVersion2","currentPath","/fr/articles/d7365c76-898a-4670-996f-64d957f81bc8","customDomain","defaultLocale",[163,164,165,166,167,168],"domainPrimaryAccentColor","relays",[433,434,435,436,437,438,439,440,441,442],"plans",[418],[170,171],"isDomainOwner","userInterfaceLanguage","session",{"_200":-5,"_414":12,"_415":416,"_76":398},"locale","sessionNpub","sessionPublicKey","hostname","syndicated","isAdmin","rights",{"_417":12},"owner",{"_24":419,"_420":421,"_38":422,"_423":424,"_425":426,"_427":428,"_429":251,"_430":92,"_51":431,"_53":432},"4503bcf3-ec1e-4216-8282-c16fabab0c38","name","Basic Plan","Stay informed with essential updates delivered straight to your inbox. ","price","0.00","currency","USD","billingInterval","monthly","trialDays","isActive",["D",1764765056591],["D",1764765056591],"wss://articles.layer3.news","wss://nostr.bitcoiner.social","wss://purplepag.es","wss://relaypag.es","wss://temp.iris.to","wss://nostr-01.yakihonne.com","wss://relay.nostr.net","wss://nos.lol","wss://relay.damus.io","wss://relay.primal.net"]