How OpenAI 'accidentally' saved Google from losing YouTube, Chrome

Generative AI's sudden ascent reshaped how courts view online search, giving Google an unlikely shield against antitrust efforts to split off YouTube and Chrome

When OpenAI launched ChatGPT in November 2022, it shook Silicon Valley to its core, and nowhere more than at Google, which was considered an unrivalled leader in artificial intelligence (AI). However, what seemed like a major setback for Alphabet’s Google, in hindsight, turned out to be a blessing in disguise.

 

The chatbot’s rise not only redefined how people search for information but may also have helped Google sidestep a potential breakup of its empire.

What's the latest?

A US federal judge on Tuesday ruled that the rise of generative AI, led by OpenAI’s ChatGPT, has made internet search more competitive. Judge Amit Mehta said AI tools like ChatGPT, Perplexity, and Claude are changing how people gather information, weakening the case presented by the US Department of Justice (DOJ) against Google.

 

 

The judge noted that while AI hasn’t replaced Google searches yet, AI startups are in a better position to compete with Google than any traditional search company has been in decades.

Why it matters

The ruling assumes significance as it will help Google keep products like YouTube and Chrome under one umbrella, instead of spinning them off into separate entities. 

 

This follows an antitrust case filed by the DOJ, where it accused the company of abusing its dominance by striking exclusive deals with device makers and browsers to make Google the default search engine, effectively shutting out rivals. The government also claimed Google overcharged advertisers due to its monopoly in search advertising.

 

The DOJ had suggested carving out Google's empire to keep the competition in check. However, ChatGPT's sudden rise weakened the case for radically restructuring Google's operations.

Snapshot of Google antitrust case

October 2020: DOJ filed a major antitrust lawsuit against Google

September 2023: The trial against Google begin before Judge Mehta

August 2024: Judge Mehta ruled that Google had maintained an illegal monopoly in general search services and text advertising

Late 2024 and early 2025: Several remedies trial followed, based on additional proposals

September 2, 2025: Judge Mehta issuing his final decision, almost a year after handing Google one of the biggest losses in an antitrust case

What does the ruling say?

While Google is allowed to keep its Chrome and Android business, it must end exclusive search distribution deals, such as those requiring its search engine to be the default on devices and apps.

 

Under the latest ruling, Google is barred from entering or maintaining exclusive contracts relating to the distribution of Google Search, Chrome, Google Assistant, and the Gemini app.

 

The company must also share certain search index and user interaction data with rivals to promote competition. According to the ruling, these remedies are to remain in place for six years.

By the numbers

ChatGPT: 700 million weekly active users (up from 500 million in March)

Google Gemini: 450 million monthly active users (as of July)

 

Google stock hit an all-time high after the ruling

What the parties are saying

In a blog post, Lee-Anne Mulholland, Google’s vice president of regulatory affairs, wrote, "The decision recognises how much the industry has changed through the advent of AI, which is giving people so many more ways to find information.

 

Stating that the "competition is intense", the company said "people can easily choose the services they want. That’s why we disagree so strongly with the Court’s initial decision in August 2024 on liability." 

 

Meanwhile, the DOJ said in its statement that the decision will “pry open” the search market.

 

"For years, Google accounted for almost 90 per cent of all search queries in the US. The court’s ruling today recognises the need for remedies that will pry open the market for general search services, which has been frozen in place for over a decade," it said.

 

Assistant Attorney General Abigail Slater of DOJ’s antitrust division said, "The first Trump administration sued Google to restore competition for millions of Americans subjected to Google’s monopoly abuses. Today, the second Trump administration has won a remedy to do just that."

What’s next

While OpenAI's rise may have inadvertently helped Google fend off antitrust pressure, the company still faces limitations.

 

Acknowledging the limitations on Google services distribution, Mulholland said, "We have concerns about how these requirements will impact our users and their privacy, and we’re reviewing the decision closely."

 

Additionally, AI companies continue to grow fast due to strong investor confidence, putting fresh pressure on Google. Moreover, Google's practices to promote its generative AI products will also remain in focus. "The ruling also recognises the need to prevent Google from using the same anti-competitive tactics for its GenAI products as it used to monopolise the search market, and the remedies will reach GenAI technologies and companies," the DOJ said in its statement.