Alphabet shares fell about 13% Thursday after Q3 results showed slower Search revenue growth alongside heavy AI spending. The selloff renewed concerns about how Google will fund its AI expansion as search behavior changes.

Some marketers see the results as evidence that Google is protecting revenue at advertisers’ expense. They point to unwanted traffic, broader keyword matching, and rising costs as signs that advertisers are paying for Google’s transition.

The earnings call supports parts of that argument while leaving others unproven. Google’s comments about AI Mode help explain why growing Search usage isn’t translating into stronger revenue growth, and why advertisers may question whether expanding AI ad placements will benefit their businesses.

Why Advertisers Are Questioning The Cost Of Google’s AI Expansion

Alphabet spent $51.36 billion on capital expenditures in Q3 and reported negative free cash flow of $9.07 billion.…