Hot take...the AI search disruption narrative is aging badly

Reddit r/ArtificialInteligence News

Summary

The article argues that despite the launch of AI search tools like SearchGPT and Perplexity, Google's search revenue has continued to grow, challenging the narrative that AI will disrupt its core business.

The thesis has been around long enough now that we can start checking it against actual results. SearchGPT launched. Perplexity grew. AI Overviews rolled out across Google itself. Every tech publication ran the "Google is in trouble" piece at least twice. The narrative had real logic behind it and plenty of smart people bought into it. Then the numbers kept coming in. Search revenue up 12% the quarter before that, 14% the quarter after, 17% most recently. Google Cloud up 28%, then 35%, then 48% in consecutive quarters. The company that was supposed to be losing its core business is compounding revenue at rates most companies would kill for. The bear case isn't dead. The DOJ antitrust situation is a real structural risk that doesn't show up in quarterly revenue yet. A forced unbundling of Chrome or Android would be a different conversation entirely. That's worth keeping an eye on. But the AI disruption part specifically has had two years to show up in the data and it hasn't. At some point the burden of proof shifts from [Google](https://www.stoxcraft.com/stocks/goog) having to prove the moat is intact to the bears having to explain why the revenue keeps growing if the moat is eroding. Curious if anyone has a strong counter to this. Not the narrative, the actual data.
Original Article

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