Shares of Alphabet, Google’s parent company, fell by more than 12 per cent. The drop wiped around $500 billion off the company’s market value. Reportedly, the growing use of artificial intelligence (AI) has raised concerns among investors and affected the US stock market.
The fall was described as one of the biggest losses in Google’s history. It also affected financial markets around the world.
Why are Google’s shares falling?
Experts pointed to two main reasons behind the decline. First, investors are worried that people may use Google less as AI platforms such as ChatGPT become more popular. This could reduce the company’s search traffic and advertising income.
As for the second reason, Google is spending large amounts of money on AI development.
The company reportedly spent $51.4 billion in the third quarter of 2026. A large part of this spending went towards AI and data centres.
Google updates AI Mode and AI Overviews
Google announced new updates to AI Mode and AI Overviews on October 15, 2026. The changes seek to make it easier for users to find original sources while reading AI-generated answers.
Google introduces new AI model Gemini Argon
Google’s parent company, Alphabet, recently introduced Gemini 4 Argon. It is the latest artificial intelligence (AI) model.
The new AI model is designed to handle a wide range of tasks. This includes coding, research and writing. The company has described Gemini 4 Argon as its most powerful AI model to date.
According to Google, cybersecurity is the model’s most distinctive capability.
The new AI model has initially been made available to a limited group of the company’s cybersecurity partners.
