Google, the leading search engine with nearly 90% global market share, faces significant threats from artificial intelligence and emerging competitors like Perplexity, which has raised $500 million. Perplexity's search model offers answers in a more conversational format rather than traditional links, making it more appealing to users. The U.S. Department of Justice's investigation into Google's monopoly status could further complicate its position, as a potential breakup of Alphabet may affect its essential distribution channels, such as the Chrome browser, threatening Google's search-based revenue model.
According to The Wall Street Journal, "Instead of the list of blue links users have long seen on Google, Perplexity offers answers in sentence form with links to the websites it pulls information from."
Google has acknowledged that artificial intelligence (AI) is a threat to its search dominance. It has begun to test an AI search function on its homepage, but among a small number of test users.
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