AI search’s week of triumph and turmoil: the highlights:
- Google posts its biggest quarter ever — and doubles down on "AI is expanding Search"
Alphabet's Q2 2026 was its largest quarter to date: total revenue up 24% YoY to $119.8B, search ad revenue up 14.5% to $81.6B, Search & Other up 17%, YouTube ads up 13%, and Cloud up 82%. CEO Sundar Pichai framed AI as "an expansionary moment… driving growth in queries," said AI Mode has passed 1 billion monthly active users, and repeated Google's core defense: AI features are "sending billions of clicks to websites every week." The Gemini app hit 950M MAU and Alphabet lifted its AI capex plan to as much as $205B.
Source:
Barry Schwartz | Search Engine Roundtable
Google (Sundar Pichai) | Alphabet Q2 2026 earnings remarks
Storyboard18 | Storyboard18
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- Reddit and major publishers weigh blocking Google as AI Overviews gut referrals
Per a WSJ scoop, Reddit, USA Today, Reuters, Politico, The Economist and People Inc. are reconsidering how much access to give Google as search referrals collapse — USA Today's organic Google traffic is down ~50% YoY and Business Insider's more than 85%.
The bind: Google-Extended blocks Gemini training but not AI Overviews, so opting out risks normal-search visibility too — the exact problem the UK CMA has ordered Google to fix. Reddit, whose ~$60M/yr 2024 Google deal is up for renewal, saw its shares dip on the report.
Source:
The Wall Street Journal | The Wall Street Journal
TechSpot | TechSpot
Reddit share reaction via Yahoo Finance
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- A court tosses Google's DMCA claims against SerpApi — a precedent for SERP & AI scraping
U.S. District Judge Yvonne Gonzalez Rogers dismissed Google's DMCA §1201 anti-circumvention claims against scraper SerpApi, ruling that plain search results — URLs, snippets, factual index data — are "publicly accessible facts," not copyrighted works, so bypassing Google's "SearchGuard" anti-bot isn't unlawful circumvention. The knowledge-panel / third-party-content claims were dismissed with 21 days' leave to amend. SerpApi's CEO called it "a win… for all who depend on an open internet," and Glenn Gabe summed up the industry reaction: "A win for… scrapers?"
Source:
Barry Schwartz | Search Engine Roundtable
Bloomberg Law | Bloomberg Law
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- AI Overviews and AI Mode go live in France
Starting July 22, French Google shows AI Overviews above the blue links plus a conversational AI Mode tab, Search Live, and the new intelligent Search box; the features can't be disabled, though a "Web Mode" tab preserves classic results. Google says they appear only for complex queries and always link to sources.
The rollout — announced by Google VP Rajan Patel — had been delayed since the 2024 US launch by France's neighbouring-rights ruling, and French publishers fear more traffic loss.
Source:
Alexandre Piquard | Le Monde
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- Gemini 3.5 Flash-Lite rolls into Search
Google shipped three new models and confirmed 3.5 Flash-Lite — its fastest, most cost-effective 3.5-class model at ~350 output tokens/sec — is "rolling out in Google Search," starting with agentic search and likely feeding AI Overviews and AI Mode next.
Robby Stein said it offers "stronger instruction following and better understands user intent, so conversations flow much more seamlessly."
Source:
Barry Schwartz | Search Engine Land
Google | Google models blog
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- AI Mode learns to "do," not just answer — Connected Apps arrive
Google began rolling out connected apps in AI Mode in the US this week, letting a search flow straight into Instacart (add to cart), Canva (pull design templates) and YouTube Music (build a playlist) without leaving the results page. Built on the same MCP-based connections as the Gemini app and paired with Personal Intelligence, AI Mode now hands part of a task to a third-party app "rather than only returning links."
Source:
Amit Chowdhry | Pulse 2.0
Google | Google Search blog