Anthropic · Claude · Google · Apple · Meta · Facebook · CNBC Technology
Anthropic's Claude chatbot and Meta's recently rolled out Muse assistant are adding to the mix
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"It's a double-edged sword, because as AI revolutionizes discovery, people might come across tools they like better than Google," Nate Elliott, an analyst covering AI at Emarketer, told CNBC in an email.
Key facts
- Meta's ad revenue rose 26% in the quarter to $63.1 billion, up from $ 50.1 billion a year earlier, compared with 12% growth for Google's search division, which brought in $63.4 billion
- Google already has a great and rapidly expanding cloud computing division that reported over 100% growth to $31 billion in quarterly revenue, driven by demand for its infrastructure and its custom AI
- Meta isn't exactly a Wall Street darling at the moment either, as the stock fell 14% in October for its worst month since October 2022
- Following its disappointing third-quarter earnings report on Wednesday, Alphabet had its worst day ever on the stock market, plunging more than 12% and wiping out about $500 billion in market cap
Summary
Google and Facebook have dominated the internet for the past two decades, turning billions of eyeballs into trillions in advertising dollars over that stretch. In the third quarter, Meta's ad business grew more than twice as quickly as Google's Search and other unit, backing up Mark Zuckerberg's claim that his company's investments in artificial intelligence are leading to better targeting tools for brands to promote goods and services across Facebook and Instagram. Google's problem is that chatbots are becoming an alternative to search, leading consumers to click far fewer blue links and hurting Google's ad revenue. Meta's ad revenue rose 26% in the quarter to $63.1 billion, up from $ 50.1 billion a year earlier, compared with 12% growth for Google's search division, which brought in $63.4 billion.