Alphabet Inc. (NASDAQ: GOOGL) experienced a 0.6% drop in stock value following news that AI startup Perplexity is offering its premium $200-per-month AI browser, Comet, for free to all users. This move positions Perplexity as a direct competitor to Google’s Chrome browser, which has maintained a dominant market share.
Comet is designed to summarize web pages and extract key information, features that could appeal to users seeking enhanced browsing capabilities. The decision to make the browser freely accessible could accelerate its adoption and challenge established players in the browser market.
Alphabet’s stock has faced pressure amid increasing competition in the AI and browser sectors. Analysts have raised concerns about potential shifts in user preferences and the impact on Alphabet’s advertising revenue, which is closely tied to its browser’s market share.
Investors will be closely monitoring how Alphabet responds to this development and whether it can maintain its leadership in the browser market amid growing competition from AI-driven alternatives like Perplexity’s Comet.
