Google-parent Alphabet is facing pressure on two fronts—the government and a host of new AI-powered search rivals. It has the capacity to meet both challenges and its stock can continue to prosper.

Shares of online advertising giant Alphabet (NASDAQ:GOOGL) fell 6.5% in the morning session after the Department of Justice proposed changes to limit Google's control over online search and ads, following a court ruling that found the company (GOOGL) unfairly blocked competition for over a decade.

The US government late Wednesday asked a judge to order the dismantling of Google by selling its widely used Chrome browser in a major antitrust crackdown.

Amazon, which is Anthropic’s primary cloud partner, is fiercely competing with Microsoft and Alphabet’s Google to offer AI-powered tools for its cloud customers.

Amazon is investing an additional $4 billion in the artificial intelligence startup Anthropic as major technology companies rush to fund generative AI

Amazon is doubling its investment in Anthropic. The e-commerce giant will provide Anthropic with an additional $4 billion in funding on top of the $4 billion it committed last year. Although Amazon remains a minority investor,