Google Places a Big Bet, and It May Not Pay Off
June 10, 2025
Just a dinobaby and no AI: How horrible an approach?
Each day brings more AI news. I have playing in the background a video called “The AI Math That Left Number Theorists Speechless.” That word “speechless” does not apply because the interlocutor and the math whiz are chatty Cathies. The video runs a little less that two hours. Speechless? No, when it comes to smart software some people become verbose and excited. I like to be verbose. I don’t like to get excited about artificial intelligence. I am a dinobaby, remember?
I clicked on the first item in my trusty Overflight service and this write up greeted me: “Google Is Burying the Web Alive.” How does one “bury” a digital service? I assumed or inferred that the idea is that the alleged multi-monopoly Google was going to create another monopoly for itself anchored in AI.
The write up says:
[AI Overviews are] Google’s “most powerful AI search, with more advanced reasoning and multimodality, and the ability to go deeper through follow-up questions and helpful links to the web,” the company says, “breaking down your question into subtopics and issuing a multitude of queries simultaneously on your behalf.” It’s available to everyone. It’s a lot like using AI-first chatbots that have search functions, like those from OpenAI, Anthropic, and Perplexity, and Google says it’s destined for greater things than a small tab. “As we get feedback, we’ll graduate many features and capabilities from AI Mode right into the core Search experience,” the company says.
Let’s slow down the buggy. A completely new product or service has some baggage on board. Like “New Coke”, quite a few people liked “old Coke.” The company figured it out and innovated and finally just started buying beverage outfits that were pulling new customers. Then there is the old chestnut by the buggy stand which says, “Most start ups fail.” Finally, there is the shadow of impatient stakeholders. Fail to keep those numbers up, and consequences manifest themselves.
The write up gallops forward:
From the very first use, however, AI Mode crystallized something about Google’s priorities and in particular its relationship to the web from which the company has drawn, and returned, many hundreds of billions of dollars of value. AI Overviews demoted links, quite literally pushing content from the web down on the page, and summarizing its contents for digestion without clicking…
Those clicks make Google’s money flow. It does not matter if the user clicks to view a YouTube short or a click to view a Web page about a vacation rental. Clicks equal revenue. Fewer clicks may translate to less revenue. If this is true, then what happens?
The write up suggests an answer: The good old Web is marginalized. Kaput. Dead as a door nail:
of course, Google is already working on ads for both Overviews and AI Mode). In its drive to embrace AI, Google is further concealing the raw material that fuels it, demoting links as it continues to ingest them for abstraction. Google may still retain plenty of attention to monetize and perhaps keep even more of it for itself, now that it doesn’t need to send people elsewhere; in the process, however, it really is starving the web that supplies it with data on which to train and from which to draw up-to-date details. (Or, one might say, putting it out of its misery.)
As a dinobaby, I quite like the old Web. Again we have a giant company doing something “new” and “different.” How will those bold innovations work out? That’s the $64 question (a rigged game show my mother told me).
The article concludes:
In any case, the signals from Google — despite its unconvincing suggestions to the contrary — are clear: It’ll do anything to win the AI race. If that means burying the web, then so be it.
Whoa, Nellie!
Let’s think about what the Google is allegedly doing. First, the Google is spending money to index the “Web.” My team tells me that Google is indexing less thoroughly than it was 10 years ago. Google indexes where the traffic is, and quite a bit of that traffic is to Google itself. The losers have been grousing about a lack of traffic for years. I have worked with a consumer Web site since 1993, and the traffic cratered about seven years ago. Why? Google selected sites to boost because of the link between advertiser appetite and clicks. The owner of this consumer Web site cooked up a bit of jargon for what Google was doing; he called it “steering.” The idea is that Google shaped its crawls and “relevance” in order to maximize revenue from known big ad spenders.
Google is not burying anything. The company is selecting to maximize financial benefits. My experience suggests that when Google strays too far from what stakeholders want, the company will be whipped until it gets the horses under control. Second, the AI revolution poses a significant challenge for a number of reasons. Among these is the users’ desire for the information equivalent of a “dumb” mobile phone. The cacophony of digital information is too much and creates a “why bother” need. Google wants to respond in the hope that it can come up with a product or service that produces as much money as the old Yahoo Overture GoTo model. Hope, however, is not reality.
As a dinobaby, I think Google has a reasonably good chance of stratifying its “users”. Some will pay. Some will consume the sponsored by ads AI output. Some will find a way to get the restaurant address surrounded by advertisements.
What about AI?
I am not sure that anyone knows. Both Google and Microsoft have to find a way to produce significant and sustainable revenue from the large language model method which has come to be synonymous with smart software. The costs are massive. The use cases usually focus on firing people for cost savings until the AI doesn’t work. Then the AI supporters just hire people again. That’s the Klarna call to think clearly again.
Net net: The Google is making a big bet that it can increase its revenues with smart software. How probable is it that the “new” Google will turn out like the “New Coke”? How much of the AI hype is just l’entreprise parle dans le vide? The hype may be the inverse of reality. Something will be buried, and it may not be the “Web.”
Stephen E Arnold, June 10, 2025
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