Google shared some interesting insights into the future of search and AI during its latest earnings call. While many focus on first negative cash flow Since its IPO 20 years ago, I think Google is on track for massive improvements.
Google revenue grew 24% year-over-year. The reason its cash flow is negative is because it spent $6 billion this quarter on physical assets. Specifically, 60% went to servers and 40% to data centers. This is the foundation of AGI, which is ultimately the goal they are working toward. Additionally, the demand for Google’s AI chips, models, and computing power is greater than they can currently satisfy.
Did you know that Google is not primarily a search engine? If you don’t believe me, try making a search (search engines). You may see Bing and DuckDuckGo there, but you probably won’t see the Google.com home page. At the end of this article, I will share more about Google’s ultimate goal: creating artificial general intelligence.
If you missed it, here are my full notes from the earnings call. And here is the PDF published by Google with all official statistics.
Watch the video with my thoughts on what we can learn from this latest earnings call:
Here are a few things that stood out to me from the earnings call and recent communications from Google.
Gemini Flash-Lite: the new AI presentation engine
While we wait Gemini 3.5 ProGoogle released Gemini 3.6 Flash and 3.5 Flash-Lite. It turns out 3.5 Flash-Lite is now the leading routing search query model for AI previews.. Google is seeing significant improvements in understanding user intent for conversational questions. For site owners, this likely means that AI previews will become even better at answering queries directly, potentially reducing traditional search traffic.
The rise of agentic research
Google CEO Sundar Pichai continues to use the word “agent” in relation to search. Search moves from an information engine to an agent manager. They announced that we will see soon connections to apps like Instacart and Canva directly in the search interface. Instead of finding a recipe, the agent will find the ingredients, add them to your cart, and order them for you on Instacart. This represents a fundamental change in the way people use the web.
I recommended that companies start playing with create tools usable by agents via WebMCP. However, with Google’s recent desire to use applications in AI mode, I now wonder if this is how this part of the Web will evolve?
Regardless, what will make a website valuable in the near future is if it helps people or their agents accomplish something. We should all work on making our websites usable. (With that in mind, I have a bunch of tools that I’ll release one day that you can use with my website.)
Overview of Codemender and cybersecurity templates
One of the most interesting updates is Gemini 3.5 Flash Cyber in a tool called CodeMender. This system remains active to find and fix code vulnerabilities in real time. As software grows and AI models become more powerful, security must be automated. Although currently limited to business users, I believe these features will eventually become the standard for web security.
I actually think it’s possible that Google hasn’t released a version of Gemini as powerful as Anthropic’s Fable or OpenAI’s GPT-5.6, because they’re working on improving Gemini 3.5 Flash Cyber. Safety is so important. We saw that the The US government has closed access to Fable for security reasons. Perhaps Flash Cyber 3.5 will be what’s needed to make Gemini’s next, more powerful models safe enough for widespread public use.
The future of online commerce
Google mentioned several times in the call for results the possibility of “buy with Google Pay” and especially how people will be able to do it while watching YouTube in their living room. I’m keeping an eye on other sites using the Universal Trade Protocol. So far I’ve only seen it on Wayfair and a few Walmart products in the SERPs. I have a few clients who are on Google’s waiting list for this feature.
Soon we will see more activity where agents will not only shop for us, but also checkout and pay!
The path to artificial super intelligence (ASI)
Google recently published an article describing the roadmap from AGI to ASI. AGI is human-like intelligence, but ASI is a system that recursively improves itself until it surpasses the collective intelligence of humanity. Google told us during the earnings call that its top priority in allocating its enormous computing resources is to ensure it is at the forefront of this development.
When asked how Google decides how to allocate compute, he had this to say:
“As it relates to allocation, the baseline we start with is what is needed to continue the development of AGI at the border.”
I will post a video soon with more information about Google’s push to create AGI and ASI.
Final Thoughts
Here’s what I found to be the most interesting news from the earnings call: Google’s revenue from network ads (aka Adsense on websites) fell 1% from Q2 2025, but Cloud revenue (selling infrastructure and AI models) increased 87%. I find that to be a staggering statistic.
Google continues on its way. We’re in the middle of a major transformation, moving from Google being a place to find information to becoming a place to help you get things done.
Remember Google’s mission statement? The first part is organizing the world’s information. We have been helping Google in this area for many years now. The second part is to make it universally accessible and useful. This is the era of agentic research that we are now entering.
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