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Alphabet lost just over $500 billion in market value on Thursday, falling from $3.97 trillion to $3.46 trillion after reporting that AI-generated Google Search summaries affected advertising revenue. Its shares fell almost 13% to a six-month low. Alphabet’s quarterly revenue rose 25% year over year to $127.6 billion, while Google Cloud revenue more than doubled to nearly $31 billion. Quarterly profit fell 25%, however, and the company reported negative free cash flow of more than $9 billion, with AI investments accounting for almost all of the increased spending. Amazon shares fell 6% in after-hours trading after the company reported 11% quarterly sales growth to $201 billion and negative cash flow of $42 billion, six times higher than three months earlier. Chief executive Andy Jassy said investments in Amazon-designed chips and the Bedrock AI platform could help create two businesses worth $1 trillion, without identifying them. Microsoft’s shares fell by less than 1% after it reported quarterly revenue growth of 19% to $92.3 billion and cloud revenue growth of 30% to $63 billion. Chief executive Satya Nadella said Copilot automated tasks nearly doubled since July and daily users grew 500% from a year earlier. Forrester analyst Tracy Woo said investors are questioning where AI’s long-term value will be captured.