U.S. retreats from demanding Google sell AI assets
U.S. drops push for Google to sell AI investments in ongoing monopoly case
The U.S. Department of Justice has abandoned its proposal to make Google sell its AI investments, including its stake in Anthropic, but continues pushing for measures to curb Google’s dominant position in online search.
Key Takeaways
- The Department of Justice backed away from requiring Google to sell its AI investments, citing potential unintended consequences for the evolving AI sector.
- The DOJ and 38 state attorneys general still seek measures like the sale of Google’s Chrome browser and restrictions on search engine agreements to address Google’s search monopoly.
- Google warns that the proposed measures could harm U.S. consumers and national security, while the bipartisan legal coalition and Alphabet Workers Union support the DOJ’s approach.
DOJ Abandons Push for Google’s AI Divestments
In a notable shift, the DOJ dropped its earlier demand for Google to sell its investments in AI companies like Anthropic, OpenAI’s competitor. This decision was influenced by new evidence suggesting that banning Google from AI investments could disrupt competition and innovation in the AI sector, reports Reuters.
Alphabet Inc Class A (GOOGL) share price dynamics (2021 - Mar 2025) Source: TradingView
Google’s minority stake in Anthropic is valued at billions, and losing this position would strengthen Microsoft-backed OpenAI’s competitive edge. The DOJ’s final proposal instead calls for Google to notify the government of future generative AI investments, ensuring transparency without risking unintended market consequences.
Monopoly Remedies Still on the Table
Despite easing off on AI divestments, the DOJ remains firm on addressing Google’s alleged illegal search monopoly. It seeks a court order forcing Google to sell its Chrome browser and loosen its agreements with Apple and other manufacturers that set Google as the default search engine on new devices.
The measures aim to restore competition in the online search market, with the trial on the proposals set for April under U.S. District Judge Amit Mehta. Google, which plans to appeal, argues that these remedies would hinder its ability to compete in AI and weaken America’s global technological leadership.
Political and Industry Reactions
The DOJ’s actions have sparked mixed reactions. Google describes the proposed remedies as extreme and harmful to consumers, the economy, and national security. Conversely, the bipartisan coalition of state attorneys general and the Alphabet Workers Union support the measures, highlighting the importance of market fairness and innovation.
President Donald Trump’s administration initiated the Big Tech crackdown, which continued under Joe Biden. With Trump’s reelection, the DOJ’s antitrust efforts are led by veteran attorney Gail Slater, keeping Big Tech companies like Google, Apple, Meta, and Amazon under scrutiny.
Additionally, Google CEO Sundar Pichai announced that Alphabet plans to invest approximately $75 billion in capital expenditures in 2025 to accelerate its artificial intelligence offerings.
