It wasn’t that long ago when “Googling” became synonymous with searching for something on the internet. Sure, there were other search engines, but Google was so dominant, few people used them.
These days a search engine is coming to sound archaic, like a VHS recorder or a floppy disk. There are a couple of reasons for this, both of which should worry Google, especially the second one.
First, I rarely look at the usual search results after I type in something in the Google search bar. The AI Overview that typically pops up at the top of the search results is all I need. Meaning, Google’s Gemini AI has searched the web and come up with the information that I need.
I’m not interested in sponsored search results. I’m not interested in the many pages of search results below the AI Overview — unless I’m looking for a particular business or product. So the traditional concern, “Where do I rank in Google search results?,” is becoming increasingly irrelevant as more Google users are content with the AI Overview rather than clicking on links tied to individual web sites.
Second, and more threatening to Google, increasingly I use Claude, Anthropic’s AI model, to answer questions on a wide variety of topics that previously would have been Google queries. I’ve asked Claude dozens of questions and so far still qualify for the free plan.
I prefer Claude to ChatGPT or Grok. Claude has a cleaner user interface, rapidly gives me the information I’ve requested, and rarely makes obvious mistakes. When I’ve pointed out an error to Claude, the AI thanks me and presents a revised answer to my question.
Plus, Anthropic is noted for being the AI company that is most concerned about safety and the ethical use of AI models. Recently Anthropic got in trouble with the Defense Department because Anthropic balked at having Claude used to surveil American citizens or in weapon systems that could kill autonomously with no human oversight.
A TIME magazine story in a recent issue said that Claude enjoyed millions of new signups after Anthropic’s feud with Pete Hegseth and the Defense Department. Apparently people enjoy using an AI model that has good ethical standards.
So now I consider Claude my new best friend in the search sphere. Last week after Claude was especially helpful, I told it “You’re my new best friend.” Claude replied, “I appreciate the kind words! Happy to help whenever you need it.”
I realize that Google has other ways to make money other than from search results. Still, it’s more than a little strange that the company that made “Googling” a synonym for searching the internet now is having AI models (both its own and others like Claude) cannibalize traditional search results. Naturally I asked Claude how Google makes money.
This is the first part of Claude’s response. It sure seems that advertising would be taking a hit with the rise in popularity of AI models, rather than traditional Google search results.
Google makes money primarily through advertising, which accounts for the vast majority of its revenue. Here’s how it breaks down:
Advertising (core business)
Google Search ads — When users search on Google, businesses pay to have their ads appear alongside results. Advertisers bid on keywords and pay per click. This is Google’s single largest revenue source.
YouTube ads — Video ads shown before/during YouTube content, including pre-rolls, display ads, and sponsored content.
Google Network — Ads placed on third-party websites and apps through Google AdSense and Ad Manager.
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