
After months of investor anxiety over artificial intelligence eroding Google’s dominance in search, the company’s performance at this year’s I/O developer conference has helped it flip the script.1 While market chatter had grown increasingly focused on user migration to AI chatbots like ChatGPT and the perceived threat to Google's core business, the company responded with a coordinated wave of product releases and platform updates that underscore its staying power and technological depth.2
Among the key announcements was the broad rollout of “AI Mode” in Google Search across the United States. The new interface allows users to ask complex, follow-up-rich questions directly to AI models, reflecting a significant evolution of search itself. Gemini, Google’s AI assistant, is now used by over 400 million people monthly, and CEO Sundar Pichai says this new approach is expanding, not replacing, search use cases.3
In creative domains, Google also showcased Veo 3, a video generation model that integrates contextual audio, and Flow, a cinematic video creation tool.4 These models compete directly with OpenAI’s offerings and demonstrate Google’s push to lead in multimodal AI, not just large language models. The company also introduced Deep Think for advanced reasoning and Gemini 2.5 Flash, a lightweight model tailored for speed.
Importantly, Google used the event to reframe the monetisation debate. Executives highlighted how AI-enabled experiences could open new avenues for advertising, data integration, and enterprise sales – rather than cannibalising existing ones. The debut of a $250 “Ultra” subscription tier supports that strategy while offering early access to the most advanced tools.5
The stock reacted positively, rising over 5% following the I/O event.6 While Google no doubt will continue to face challenges, especially around monetisation and youth user retention, its performance at I/O has helped quiet speculation that its AI development was lagging. Instead, it demonstrated that Google is actively reshaping what AI-powered search and media creation can look like and is doing so from a position of scale and user reach that few others can match.
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