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Alphabet’s stock fell about 0.6% after Perplexity made its AI-powered Comet Browser free for all users.
The new freemium model includes Comet Plus, a $5 add-on offering premium publisher content.
Investors view Comet as a potential long-term threat to Alphabet’s Chrome and search dominance.
Alphabet stock faced a mild decline after Perplexity announced that its Comet browser, which was previously available only to premium subscribers, would now be free for everyone. The move, revealed in early October 2025, stirred discussions in both the tech and finance worlds. Investors interpreted this as a potential challenge to Google’s dominance in the browser and online search markets.
Comet was introduced in July 2025 as part of Perplexity’s $200-per-month Max plan. The browser stands out because it combines traditional browsing with artificial intelligence. The platform can summarize web pages, extract important information, answer questions, and even perform tasks on behalf of the user. At the time of its launch, only top-tier subscribers could use the platform, keeping the reach limited.
The new announcement has changed that. Perplexity is now making Comet available to everyone worldwide through free access. The company confirmed that while the free version has some usage limits, the browser includes most core features. Advanced tools and extended capabilities would still remain under paid tiers.
Along with the free version, Perplexity introduced Comet Plus, a $5 per month add-on that gives users access to premium content from selected publishers. Comet Plus is automatically included in Pro and Max subscriptions, and can also be purchased separately. This pricing model allows users to explore Comet without spending money while offering a clear upgrade path to premium features.
By switching to a freemium model, Perplexity removed the biggest obstacle to adoption: cost. Anyone can now experience Comet’s AI-powered tools. The move significantly increases the product’s exposure and could accelerate user growth.
Following the announcement, Alphabet’s shares dropped by nearly 0.6%, closing around $246.43 per share. Although a decline of less than 1% may seem small, the reaction was noticeable given Alphabet’s massive market capitalization. Investors saw the move as a potential long-term risk to Google’s browser and advertising ecosystem.
Chrome, which dominates global browser usage, is one of Google’s key entry points for collecting data, serving ads, and driving search traffic. Any technology that changes how users search or consume information can affect Google’s core business. The decline in Alphabet’s stock reflected investor concern that Comet’s new AI-driven approach might shift user habits away from Google services.
Market analysts described the fall as moderate but meaningful. The tool highlighted that investors are now paying closer attention to new products capable of influencing web traffic, search behavior, and ad revenue models.
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Comet is not a typical browser and is designed as an AI-first platform that redefines how users explore and interact with the web. Instead of simply displaying web pages, the browser acts as an intelligent assistant that provides summarized answers, performs research, and even executes actions such as booking tickets or organizing information.
This combination of AI and browsing directly touches Google’s territory. Chrome has long been the main gateway to Google Search and the broader ad ecosystem. If users begin using Comet’s built-in assistant instead of manually searching on Google, the volume of search queries could decline. Fewer searches would mean fewer ads served and lower advertising revenue.
Comet’s ability to summarize pages and deliver information instantly may also reduce users’ need to click through multiple websites, a behavior that traditional ad-based internet models depend on. By combining AI summaries with publisher partnerships, Perplexity is experimenting with a completely different approach to information discovery and monetization.
Making Comet free brings both opportunities and challenges. On one hand, the tool allows Perplexity to expand its user base quickly. The more people use the browser, the more data Comet gathers to improve its AI models. Greater usage also increases community support.
However, the freemium strategy carries risks. Free users might not convert to paying subscribers, which could strain Perplexity’s revenue model. The free version includes rate limits, meaning users can only make a certain number of AI requests daily. If those limits feel too restrictive, users may lose interest before becoming loyal.
Another issue is habit. Chrome’s dominance is built on years of integration across Android devices, Gmail, and other Google products. Many users choose Chrome simply because of convenience and familiarity. For Comet to gain real traction, the platform must offer not only innovation but also stability, performance, and ease of use that can match Google’s products.
Security and privacy are also key factors. Recent independent audits highlighted potential vulnerabilities in Comet’s design, such as exposure to phishing risks and code injection. For a browser that claims to act intelligently on the user’s behalf, maintaining security and trust will be crucial.
Alphabet is unlikely to ignore a new rival. The company has already been integrating the Gemini AI model into Google Search and Chrome, and the Comet launch could push the company to accelerate this integration. New AI-driven features may appear in Chrome updates to make browsing more personal and conversational.
Google could also strengthen relationships with publishers and advertisers to prevent content and revenue from flowing toward Perplexity’s platform. Offering improved ad tools, publisher partnerships, or exclusive integrations could help maintain its dominant position.
Regulatory attention is another consideration. Google’s search and browser businesses are already under global scrutiny for antitrust reasons. If Comet starts to capture measurable market share, regulators might use its rise to argue for increased competition and push for stricter oversight of Google’s practices.
Also Read - Google AI Studio Vs Perplexity AI: What Sets Them Apart?
Comet’s launch adds momentum to what many analysts now call the “AI browser race.” Other tech companies, such as Opera and Microsoft, have also been experimenting with integrated AI features. Each aims to transform the traditional browsing experience into something more interactive and personalized.
If Comet succeeds in attracting large numbers of users, it could force the industry to rethink how browsers work and how web content is delivered. For Google, this would mean adjusting its advertising and data strategy to maintain profitability in an era when AI assistants filter or summarize much of the web before users even see it.
The next few months will be important in judging Comet’s success. Adoption numbers for the free version will show whether users are genuinely interested. More important will be how many of those users upgrade to the paid version.
Any change in Chrome’s market share will also be closely watched. Even a small drop in Chrome usage could have major financial implications for Alphabet. In addition, partnerships with publishers and the legal handling of summarized content will influence how sustainable Perplexity’s model is.
Competitors’ reactions will shape the next phase of this new browser war. If Alphabet or Microsoft launch similar free AI browsers, Comet’s early advantage might fade. However, if Perplexity continues to innovate and build trust, it could hold its ground as a serious alternative.
Perplexity’s decision to make its Comet browser free has created a major shift in the browser and AI market. The move triggered a modest decline of about 0.6% in Alphabet’s stock as investors evaluated the possible long-term impact on Google’s business. Comet’s mix of browsing and AI assistance offers a fresh way to interact with the internet, potentially changing how people search and consume content.
Whether Comet becomes a lasting threat or just a short-term experiment depends on how users respond. If adoption continues to rise and the product proves reliable, Google’s search and ad empire may face its first serious challenge in years. For now, the competition has clearly intensified, and the market will be watching closely to see who shapes the future of AI-powered browsing.
1. Why did Alphabet’s stock fall after the Comet Browser launch?
Alphabet’s stock dropped around 0.6% because investors saw Perplexity’s move to make the Comet Browser free as a possible challenge to Google’s Chrome and search ecosystem, which could affect Alphabet’s long-term ad revenue.
2. What is the Comet Browser by Perplexity?
Comet Browser is an AI-powered web browser that can summarize web pages, answer questions, and perform tasks. It combines browsing with artificial intelligence, aiming to change how users search and interact with online content.
3. What is Comet Plus, and how is it different from the free version?
Comet Plus is a $5-per-month add-on that gives users access to premium news and publisher content. The free version provides core browsing and AI features but has daily usage limits and fewer advanced tools.
4. How does Comet Browser threaten Alphabet’s dominance?
Comet integrates AI directly into the browsing experience, allowing users to get instant answers instead of traditional Google searches. This could reduce search traffic and ad clicks, which are key to Alphabet’s revenue model.
5. What happens next for Alphabet and Perplexity?
Alphabet is expected to expand its AI features in Chrome and Search to stay competitive, while Perplexity focuses on scaling Comet’s user base and refining its freemium model. The next few months will show whether Comet gains real traction.
