The competitive landscape in the artificial intelligence (AI) industry is heating up, with legal battles now reaching U.S. courts. A recent trial is set to determine whether Google's (GOOG, GOOGL) search empire will be dismantled, following a ruling that the company operates an illegal online search monopoly. AI discussions have dominated the trial, with executives from OpenAI and Perplexity AI testifying against Google, highlighting the struggle between tech giants and emerging startups for AI supremacy.
OpenAI, backed by Microsoft (MSFT), expressed interest in acquiring Google's Chrome browser if the court mandates its sale, aiming to showcase an AI-first browser experience. The company argues that Google's refusal to share search technology hinders the scaling of AI models like ChatGPT. Meanwhile, Perplexity AI criticized Google's restrictive agreements that stifle AI-driven search tools.
Google contends that the Department of Justice's proposals could stifle AI innovation during a critical paradigm shift. Despite the challenges, Google's search business continues to bolster its parent company Alphabet's strong financial performance. Experts suggest that AI-powered "answer engines" might soon surpass traditional search, but Google's potential divestiture of Chrome could impact its competitive edge.
