The Varosity AI GTM Report

Alphabet's query growth hits a five-year high while Search revenue lags, Microsoft reorganizes around agents, ServiceNow's AI beat meets a stock slide, experts defer to AI agents, Reddit goes For You, and AI political ads test disclosure labels.

Show Notes

Alphabet's search queries are growing at their fastest pace in five years, but Search revenue rose 12% and came in below estimates, and the stock fell about 10% after hours. Microsoft now reports a segment called "Agents and Infra," grew Azure 48%, and booked $10B from OpenAI in the quarter. ServiceNow raised its AI contract-value target to $1.7B, but slower forward-bookings guidance sent shares down sharply. An Anthropic study found expert analysts went with an AI agent's secretly assigned lean 86% of the time. Reddit is adding an algorithmic "For You" feed. And one week before the midterms, AI-generated political ads are testing what disclosure labels actually do.

Today's stories:

  • Alphabet's AI search paradox: Q3 revenue was $127.6B (+25%) and Google Cloud grew 103%. Pichai said query growth is the highest in five years and the Gemini app has 1 billion users. Search & other revenue was $63.4B (+12%), below estimates, and shares fell about 10% after hours. Alphabet release · CNBC
  • Microsoft's "Agents and Infra" era: revenue was $92.3B (+19%), Azure grew 48%, and commercial RPO rose 73% to $677B. The new Agents and Infra segment brought in $76.8B. The 10-Q shows $10B of revenue from OpenAI in the quarter. Microsoft · TechCrunch
  • ServiceNow's AI beat, stock slide: subscription revenue was $3.99B (+21%), the 2026 AI ACV target rose to $1.7B, and agentic AI consumption in production is up more than 13x. Q4 cRPO guidance of 18.5% sent shares down about 15–17% after hours. ServiceNow release · Investing.com
  • Experts defer to their AI agents: in Anthropic's study of 50 professional analysts, participants followed the agent's coin-flip-assigned lean 86% of the time, and 77% repeated its arguments while only 15% credited it. Anthropic · Al Jazeera
  • Reddit goes "For You": a new dual-feed homepage pairs algorithmic recommendations with a "Following" feed, rolling out globally over the coming weeks. TechCrunch
  • AI political ads and the limits of labels: 31 states have political deepfake laws, most of them requiring disclosure. A campaign-innovation group says adding an AI label to a real ad made voters believe it less, though the study's methods weren't published. The National News Desk

AI disclosure: this episode is AI-written and voiced by an AI host (Jack King) on Varosity.ai.

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What is The Varosity AI GTM Report?

Your daily ten-minute read on where AI meets go-to-market. Host Jack King breaks down the day's breaking AI news for sales, marketing, and revenue teams — generative video, voice and music models, AI agents, and the tooling that's reshaping how companies sell. Sponsored by Varosity.ai.