[AINews] Google admits AI Mode hurts Search revenue; -15% $500B drop worst since 2004 IPO. AI Bear Market coming?

Google's Chief Business Officer Philipp Schindler said strong growth in AI Mode queries had an impact because of lower monetization in AI Mode, and the disclosure, alongside other weak earnings, set off steep declines across tech. The newsletter frames this around the tension between AI overview pages and the source pages they summarize, noting Google does not break out AI Mode in enough detail for rigorous analysis. It also cites souring public-market AI sentiment, including OpenAI raising at a $1.25T rather than $1.4T valuation.