> On-device AI flanks the big giants that areservcie-centric.

Wouldn't on-device AI also support Google's position? If search is to be protected, on-device AI (small models) would be capable of basic usage, but inept at answering knowledge questions specifically, necessitating a search service be preserved. They have already launched local models in Chrome and Android. Meanwhile none of the big AI competition can profit off of local models, so this is a unique opportunity for big-G.

That said, I disagree with the premise you propose. It's 2026, and about 40% of their revenue over the last few years comes from non-search products (depending on quarter). Oh and Apple doesn't seem to be investing enough in AI products, because it's just making them look bad, not providing a "flanking attack".

Google is pulling in tons of AI revenue - from subscriptions, personal and enterprise, and Google Cloud (APIs etc). Cloud is seeing a ton of growth lately, and I'm sure that's largely from AI services that are uniquely available there. As long as they can serve models with a better cost structure (thanks TPUs) they can squeeze out better margins than their competitions.