AI disruption

Google’s search market share fell below 90% in Q4 2024 (89.34%), marking its first sustained decline amid rising AI competition from platforms like Perplexity. Elon Musk claimed AI would “render traditional search obsolete,” as analysts highlight challenges like AI hallucination risks and reliability concerns. Despite a brief rebound in early 2025, Google faces regulatory and technological pressures to adapt. Musk also disclosed operational crises at X, revealing system vulnerabilities and returning to round-the-clock management ahead of critical launches for xAI, Tesla, and SpaceX. Experts describe the shift as a “perfect storm” threatening Google’s 25-year dominance.