Google shared some fascinating information about the future of Search and AI in its recent earnings call. While many have focused on the poor initial revenue since its IPO 20 years ago, I think Google is in for a big boost.
Google’s revenue rose 24% year over year. The reason the cash flow is good is because it spent $6 billion this quarter on tangible assets. Specifically, 60% went to servers and 40% to data centers. This is the basis of AGI, which is the principle on which they build. Also, there is a greater demand for Google AI chips, models, and computing power than it can currently meet.
Did you know that Google is not actually a search engine? If you don’t believe me, try doing a search [search engines]. You might see Bing and DuckDuckGo there, but you probably won’t see the Google.com homepage. I will share more at the end of this article about what is the main goal of Google – to create Artificial General Intelligence.
In case you missed it, here are my full notes from the earnings call. And here is the PDF published by Google with all the official statistics.
Watch the video for my thoughts on what we can learn from this latest earnings call:
Here are a few things that stood out to me from Google’s recent earnings call and communications.
Gemini Flash-Lite: New AI Overview Engine
While we are waiting for Gemini 3.5 Pro, Google released Gemini 3.6 Flash and 3.5 Flash-Lite. It turns out that 3.5 Flash-Lite is now the main model for AI Overview search queries. Google is seeing significant improvements in understanding the user intent of chat queries. For site owners, this likely means that AI Overview will be even better at answering queries directly, potentially reducing general search traffic.
The Rise of Agentic Search
Google CEO Sundar Pichai keeps using the word “agent” in relation to Search. The search changes from the search engine to the agent manager. They announced that we will soon see connections to apps like Instacart and Canva directly within the search interface. Instead of finding a recipe, the agent will find the ingredients and add them to your cart and order them for you from Instacart. This represents a fundamental change in the way people use the web.
I recommended that businesses start playing by creating tools that agents can use with WebMCP. However, with Google’s recent push to use apps within AI Mode, I wonder now how this part of the web will evolve?
Either way, what will make a website valuable in the near future is that it helps people, or human agents, accomplish something. We should all work to make our websites work. (With that in mind, I have a bunch of tools that I will publish one day that you can use alongside my website.)
Introducing Codemender and CyberSecurity models
One of the most interesting updates is Gemini 3.5 Flash Cyber in a tool called CodeMender. This program is constantly working to find and patch code vulnerabilities in real time. As software matures and AI models become more powerful, security must be automated. Although currently limited to business users, I expect these capabilities to eventually become the standard for web security.
I actually think it’s possible that Google didn’t release a version of Gemini as powerful as Anthropic’s Fable or OpenAI’s GPT-5.6 because they are working on developing Gemini 3.5 Flash Cyber. Safety is very important. We noticed that the US government blocked access to Fable due to security concerns. Perhaps 3.5 Flash Cyber will be what is needed to make future Gemini-powered models safe enough for wider public use.
The Future of Online Commerce
Google mentioned several times in the earnings call the ability to “buy with Google Pay” and specifically how people will be able to do this by watching YouTube in their living room. I am looking for more sites using the Universal Commerce Protocol. So far I’ve only seen Wayfair and a few Walmart products in the SERPs. I have a few customers on Google’s waiting list for this feature.
Soon, we will see more work where agents will not only buy for us, but check and pay!
The Road to Artificial Super Intelligence (ASI)
Google recently published a paper outlining the road from AGI to ASI. AGI is human-comparable intelligence, but ASI is a system that repeatedly improves itself until it surpasses the collective intelligence of humanity. Google told us on the earnings call that their top priority in allocating their massive computing resources is to ensure that they are at the forefront of this development.
When asked how Google decides to allocate computing, he said, this:
“In the assignment, the foundation we are starting with is what is needed to continue the development of AGI at the border.”
I will have a video soon with more on Google drive for building AGI and ASI.
Closing Thoughts
Here’s what I found to be the most interesting news from the earnings call: Google’s revenue from network advertising (also known as Adsense for websites) decreased by 1% compared to Q2 2025, but revenue from the Cloud (selling AI infrastructure and models) increased by 87%. I find this a shocking statistic.
Google continues to innovate. We’re in the midst of a significant transition from Google being a place to find information, instead, to a place to help you get things done.
Remember Google’s mission statement? The first part is to organize the knowledge of the world. We’ve been helping Google do this for years. The second part is, to make it universally accessible and usable. This is the agent search period we are entering now.
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