Alphabet Stock Initially Jumps As Google Considers Charging For AI Search: The Details

Alphabet Inc GOOG GOOGL shares are moving in Wednesday’s after-hours session following a report suggesting the company is considering charging users for AI-powered search.

What To Know: According to a Financial Times report, Google is looking into potentially charging for new “premium” search features powered by generative AI.

Google is reportedly considering options including adding AI-powered search features to its premium subscription services, which already come with access to the company’s Gemini AI assistant.

People familiar with the matter told Financial Times that engineers are currently working on developing the technology needed for a paid service feature, but noted executives have not yet made a final decision on if they will actually launch the new premium features.

The report indicates that this would mark the first time Google has ever put any part of its core Search product behind a paywall. Google’s traditional search engine is expected to remain free of charge either way.

The news comes more than a year after Microsoft Corp MSFT launched its own AI-powered search tool called Copilot, using OpenAI’s ChatGPT technology in its Bing search engine.

Google’s Search business and related ads generated approximately $175 billion in revenue for the company in 2023, representing more than half of Alphabet’s total sales.

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GOOG Price Action: Alphabet shares were initially spiked higher on the report. The stock traded up to around $160 per share before reversing course and turning negative. Alphabet shares were down 0.44% after-hours at $155.68 at the time of publication Wednesday, according to Benzinga Pro.

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