Google loses $500 billion in market value after AI costs and Gemini hit ad revenue

Alphabet lost $500 billion in market value on Thursday after releasing quarterly results, marking the largest stock decline in Google's history, driven by falling revenue and massive AI investments. Google's core advertising income is shrinking as users increasingly rely on its own AI chatbot, Gemini, which generates fewer ad revenues. Meanwhile, Alphabet spent €46 billion in Q3 alone on AI infrastructure, funded partly by debt, with an €8.1 billion cash outflow. The losses also hit Dutch chipmakers ASML, ASMI, and BESI, which fell 5-6 percent on Friday amid broader AI investment concerns. European markets additionally faced inflation, expected rate hikes, rising energy costs, and US threats toward Iran.