Overview
- Google announced at its developer event that Gemini 3.5 Flash is now the default model in Search and that AI Mode in Search has passed 1 billion monthly users, showing rapid user shift to AI-native experiences.
- The company rolled out a broad product slate that includes Gemini Omni, a 24/7 personal agent called Gemini Spark, Antigravity 2.0 for code, an agent-optimized desktop app, Universal Cart for cross-service shopping, and details on intelligent eyewear.
- Alphabet is pushing monetization with new paid tiers such as a $100 monthly plan for developers and creators plus a reduced Ultra tier and plans to launch information agents first for premium users.
- Management told investors it will raise capital spending materially to support AI chips and cloud capacity, with a capex forecast of $180–$190 billion, even as Google Cloud reported strong growth to about $20 billion in quarterly revenue.
- Regulatory complaints in Europe over scam ads and analyst warnings that AI-related costs may outpace near-term gains have left investors cautious, though major brokerages continue to rate the stock a buy while stressing that upcoming margins will be the key test.