Google expands AI search ads to international markets as revenue grows 25%

Google is expanding AI search ads to international markets, including ads that follow multi-question conversations, as Alphabet reported $127.6 billion in revenue, up 25%, with search growth slowing to 12%. The move comes as consumer search shifts toward AI, with CEO Sundar Pichai noting AI queries are three times longer. Google Cloud grew 103% to $30.7 billion, but shares fell 8% despite this. Ads in AI Mode have been in the US since 2025, with Google claiming sponsored product cards achieve click-through rates comparable to organic results. A University of Michigan study found half of users struggle to identify ads within chatbot responses.