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AI & Enterprise

Google search ecosystem shifts as AI mode fuels reality of open web decline after 1 year

It has been a year since Google introduced AI Mode, a natural-language AI search feature that provides conversational answers instead of links. Research cited by The New York Times showed users spend 1 to 9 minutes longer in AI Mode than in traditional search, and about 75 percent of sessions do not lead to other websites. Publishers, companies and banks worry traffic is falling. Google rejects claims it threatens the open web and says it still sends billions of clicks outward.

AI & Enterprise

Alphabet revenue up 24 percent on Google Cloud; free cash flow turns negative on AI investment

Alphabet, Google’s parent, said on July 22 that second-quarter revenue rose 24 percent on the back of strong performance in its cloud business. It also said free cash flow turned negative as it continued to increase investment in AI data centres. Alphabet posted revenue of $119.8 billion, with cloud revenue at $24.8 billion and search revenue at $63.3 billion. Net profit was $112.1 billion, and the shares were little changed in after-hours trade.

AI & Enterprise

Open-source AI models rise globally as U.S. companies join in

Open-source AI models are moving from challengers to the mainstream in the global AI industry. Chinese companies such as DeepSeek, Z.ai and Moonshot AI are releasing open-weight models, and U.S. firms are also joining the trend, putting pressure on closed-model leaders OpenAI and Anthropic. Moonshot AI unveiled its Kimi K3 model, while U.S. startup Thinking Machines Lab introduced its first model as open-weight. The shift is also influencing stock markets and corporate strategies.