There are 3 major search query segments that users traditionally make. Commercial, navigational and educational (this has now evolved into actionable as it executes the task for the end user as well). Educational has always been a difficult one for Google in particular to monetise. 99%~ of the revenue comes from commercial terms.

OpenAI and the GenAI category is monetising the third segment. I think the valuation makes sense and likely grows considerably as the market is so large. The only way it becomes profitable however is if energy prices come down as the compute cost is too high. So it’s a long term investment on building and holding their network on the educational segment and energy prices going down to allow it to be profitable.