Alphabet, Google's parent company, saw its stock price drop 8% after announcing its third-quarter earnings on Wednesday. The earnings report showed Alphabet's total revenue increased 25% year-over-year to $127.6 billion, but growth in its core search advertising business continued to slow, rising only 12% in the third quarter, down from 17% in the second quarter and 19% in the first quarter. To address this challenge, Google announced the first international expansion of its AI-powered search advertising business, aiming to unlock new revenue streams through generative AI. Philipp Schindler, Google's Chief Business Officer, stated that click-through rates for sponsored products in AI models are now comparable to organic search results, and user research indicates the ads are relevant.