Alphabet's stock dropped nearly 10% after Google revealed its AI Mode searches generate less revenue. Despite this, overall search revenue still grew 12% year-over-year to $63.25 billion in Q3. Google reported its highest search query growth rate in five years, partly due to AI Mode adoption. However, AI Mode's lower monetization contributed to a slower growth rate compared to the previous year.Alphabet's substantial Q3 infrastructure spending, totaling $51.4 billion, primarily on servers and networking, impacted profitability. Net income for the quarter was $26.17 billion, down from $35 billion in Q3 last year. Chief Business Officer Philipp Schindler attributed the revenue slowdown to AI Mode's lower monetization.He expressed optimism that AI search will eventually be profitable, citing its ability to capture high-value commercial intent and create incremental monetization opportunities. Google has now enabled ads alongside AI Mode searches globally, after initial US testing. Currently, AI Mode searches are less lucrative than traditional search, which accounts for nearly half of Alphabet's overall quarterly revenue of $125.8 billion.