Core business growth slows at U.S. tech giants, posing challenges for AI search profitability

According to Bloomberg, U.S. tech giants such as Google and Amazon have invested a combined $750 billion in artificial intelligence, while growth in their core advertising and retail businesses has slowed. New products such as AI-powered search are eroding traditional profit models, raising investor concerns and leading to sharp declines in the stock prices of the companies involved.

This shift reflects the commercialization pressures facing AI businesses: changes in how people use new products need to be reconciled with existing profit models. Increased investment does not necessarily mean revenue will grow at the same pace. The key is whether new products can generate sustainable commercial returns and how significantly they affect traditional businesses.

Key Considerations for Overseas Advertising and Generative Engine Optimization

For overseas advertising, the impact of AI-powered search on traditional profit models may further affect ad placements and commercial conversions. For businesses focused on generative engine optimization (GEO), the exposure opportunities created by new products should also be assessed in light of actual conversion results; success should not be measured solely by whether content is displayed.

Current information about the developments indicates that the commercialization of AI-powered search still faces challenges, but it is not enough to show what specific changes, if any, have occurred in the results of advertising or generative engine optimization. Going forward, businesses can monitor the performance disclosed by the companies involved and changes in how their new products are commercialized.