The Future Of Search & AI: What I Learned From Google’s Latest Earnings Call

Google shared some attention-grabbing details about the way forward for Search and AI in its most up-to-date earnings name. Whereas many are specializing in the first negative cash flow since its IPO 20 years in the past, I feel Google is properly on monitor for enormous enhancements.

Google’s revenue is up 24% year-over-year. The rationale it’s money circulate detrimental is as a result of it spent $6 billion this quarter on bodily property. Particularly, 60% went to servers and 40% to information facilities. That is the muse for AGI, which finally is the aim they’re constructing in the direction of. Additionally, there’s extra demand for Google’s AI chips, fashions, and computing energy than they will at the moment meet.

Do you know Google shouldn’t be really primarily a search engine? In case you don’t consider me, strive doing a search for

. You may even see Bing and DuckDuckGo in there, however you doubtless is not going to see the homepage for Google.com. I’ll share extra on the finish of this text about what Google’s final aim is – to create Synthetic Basic Intelligence.

In case you missed it, listed here are my full notes from the earnings call. And right here is the PDF Google published with all the official statistics.

Watch the video with my ideas on what we are able to study from this newest earnings name:

Right here are some things that stood out to me from the earnings name and from current Google communications.

Gemini Flash-Lite: The New Engine Of AI Overviews

Whereas we await Gemini 3.5 Pro, Google launched Gemini 3.6 Flash and three.5 Flash-Lite. It seems 3.5 Flash-Lite is now the primary model routing search queries for AI Overviews. Google is seeing vital enhancements in understanding consumer intent for conversational questions. For website homeowners, this doubtless means AI Overviews will change into even higher at answering queries straight, doubtlessly lowering conventional search site visitors.

The Rise Of Agentic Search

Google’s CEO Sundar Pichai retains utilizing the phrase “agentic” in reference to Search. Search is shifting from an information engine to an agent manager. They introduced we’ll quickly see connections to apps like Instacart and Canva directly within the search interface. As a substitute of discovering a recipe, the agent will discover the elements and add them to your cart and organize them for you from Instacart. This represents a basic shift in how folks use the net.

I’ve really helpful that companies begin taking part in with creating tools that can be used by agents via WebMCP. Nevertheless, with Google’s current push to make use of apps from inside AI Mode, I’m questioning now if that is how this a part of the net will evolve?

Both approach, what’s going to make an internet site worthwhile within the close to future is whether or not it helps folks, or folks’s brokers accomplish one thing. We should always all be engaged on making our web sites actionable. (With that in thoughts, I’ve a bunch of instruments I’ll at some point publish that you need to use alongside my web site.)

Introducing Codemender And Cyber Safety Fashions

One of the attention-grabbing updates is Gemini 3.5 Flash Cyber in a device known as CodeMender. This method stays lively to seek out and patch code vulnerabilities in actual time. As software program develops and AI fashions change into extra highly effective, safety should be automated. Whereas at the moment restricted to enterprise customers, I anticipate these capabilities will ultimately change into normal for internet security.

I really assume it’s potential that Google has not pushed out a model of Gemini that’s as highly effective as Anthropic’s Fable or OpenAI’s GPT-5.6 as a result of they’re engaged on bettering Gemini 3.5 Flash Cyber. Security is so vital. We noticed that the U.S. government shut down access to Fable over safety concerns. Maybe 3.5 Flash Cyber will probably be what’s wanted to make the upcoming extra highly effective fashions of Gemini secure sufficient for widespread public use.

The Future Of Commerce On-line

Google talked about a couple of occasions within the earnings name the power to “buy with Google Pay” and particularly how folks will be capable of do that from watching YouTube of their front room. I’m protecting an eye fixed out for extra websites utilizing the Universal Commerce Protocol. To this point I’ve solely seen it on Wayfair and some Walmart merchandise within the SERPs. I’ve a couple of shoppers who’re on Google’s ready record for this characteristic.

Quickly, we’ll see extra exercise the place Brokers is not going to solely store for us, however try and pay as properly!

The Path To Synthetic Tremendous Intelligence (ASI)

Google just lately revealed a paper outlining the roadmap from AGI to ASI. AGI is intelligence on par with a human, however ASI is a system that recursively improves itself till it surpasses the collective intelligence of humanity. Google is informed us within the earnings name that their prime precedence in allocating its large compute assets is to make sure they’re on the forefront of this improvement.

When requested how Google decides easy methods to allocate compute, he mentioned, this:

“On allocation, the baseline with which we begin is what it takes to proceed AGI improvement on the frontier.”

I’ll have a video out quickly with extra on Google’s drive to construct AGI and ASI.

Closing Ideas

Here’s what I discovered to be probably the most attention-grabbing piece of reports from the earnings name: Google’s income from community adverts (aka Adsense on web sites) fell by 1% in comparison with Q2 2025, however income in Cloud (promoting AI infrastructure and fashions) was up 87%. I discover this to be a staggering stat.

Google is marching on. We’re within the midst of a major transformation from Google being a spot to seek out data to as an alternative, be a spot that will help you get issues executed.

Do you recall Google’s mission assertion? The primary half is to arrange the world’s data. We’ve been serving to Google do that for a few years now. The second half is, to make it universally accessible and helpful. That is the agentic search period that we’re coming into now.

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