European Google rivals partner on search engine infrastructure to counter Big Tech
A Google logo displays on a smartphone screen and the European flag on a computer screen.
Nikolas Kokovlis | Nurphoto | Getty Images
LISBON, Portugal — Ecosia and Qwant, two search engines competing with Google, announced a partnership Tuesday to build a European search index and reduce their dependence on U.S. Big Tech firms.
The two internet search firms agreed a joint venture, called the European Search Perspective or EUSP, with ownership split 50-50 between both firms. With a view to launch in France in early 2025, the venture aims to serve “improved” French and German language search results.
Ecosia is based in Berlin, while Qwant is headquartered in Paris. Qwant is a privacy-focused search engine that promises not to track users or resell their personal data. Ecosia’s search engine focuses on sustainability, pledging to plant one tree for every 50 searches on its platform.
Search infrastructure is what powers our access to the web, but it’s currently primarily controlled by Google, the dominant search engine with a more than 90% share of the global market. Even alternative search engines, such as Ecosia and Qwant, have to rely on existing tech from companies like Microsoft to deliver search results.
Christian Kroll, CEO of Ecosia, told CNBC the project had been made possible, in part, by new tech-focused competition rules in the European Union. The Digital Markets Act, which came into force earlier this year, requires Big Tech firms it calls “gatekeepers” to offer fair and reasonable access to their platforms.
In Google’s case, the company is required under the DMA to share data that would be useful for training a search model.
Why build a European search index?
Currently, alternative search engines like Ecosia, Qwant and DuckDuckGo don’t develop their own back-end infrastructure. The new venture will see them build their own search index from scratch, however, amassing results from a mix of different search engines. Ecosia last year switched to a mix of Google and Bing search results.
Ecosia and Qwant say their new search index will be “privacy-first,” using technologies from Qwant that were redesigned in 2023. Both companies will use the search index themselves but the tech will also be made available to other independent search engines and tech firms.
The launch comes as alternative search providers like Ecosia and Qwant are being forced to grapple with higher prices from Microsoft to access its Bing Search API (application programming interface), a piece of software that lets developers access the tech giant’s backend search infrastructure.
“We are European companies and we need to build technology that makes sure no third-party decision — for instance, Microsoft’s decision to increase costs to access their search API — could jeopardize our business,” Olivier Abecassis, CEO of Qwant, told CNBC.
“It is nothing against the U.S. or U.S. companies. It is all about the sovereignty of our business and companies,” he added. Abecassis will also serve as CEO of the new venture, which hasn’t yet raised funding from external investors.
Europeans are “very dependent on the United States for our technology,” Kroll said in an interview last week ahead of the launch. The election of Donald Trump as U.S. president could escalate geopolitical tensions, he added — and this could be a problem for Europe’s reliance on U.S. technology.
He pointed to the disruption to European energy supplies after Russia cut off gas to Europe following its invasion of Ukraine, saying this should serve as a warning for what can happen when an entire continent becomes too dependent on a single country for a key resource.
AI ‘paradigm shift’ in search
Part of Ecosia and Qwant’s push to build a search engine from scratch will be to offer a “transparent and secure data pool” for new AI technologies, according to the companies.
Search providers may get “more restrictive” in future, given the shift toward generative AI, Ecosia’s Kroll told CNBC.
“They know they’re sitting on a very important resource for this paradigm shift,” he said. “Yes, you need large language models to have good chatbots. But you also need access to a good index.”
The rise of OpenAI’s ChatGPT has put pressure on incumbent search giant Google, as people increasingly turn to the viral chatbot to search for information.
Meanwhile, a slew of new search engines, such as Perplexity, have also entered the market, offering their own generative-AI-based alternatives to Google.
Google has fought back with its own generative AI search product, integrating its Gemini large language model into search results.
ChatGPT for Teachers
Courtesy of OpenAI
OpenAI on Wednesday announced ChatGPT for Teachers, a version of its artificial intelligence chatbot that is designed for K-12 educators and school districts.
Educators can use ChatGPT for Teachers to securely work with student information, get personalized teaching support and collaborate with colleagues within their district, OpenAI said. There are also administrative controls that district leaders can use to determine how ChatGPT for Teachers will work within their communities.
OpenAI said it is initially launching ChatGPT for Teachers with a cohort of districts that represent roughly 150,000 educators. ChatGPT for Teachers will be free to K-12 educators in the U.S. through June 2027, the company said.
“Our objective here is to make sure that teachers have access to AI tools as well as a teacher-focused experience so they can truly guide AI use,” Leah Belsky, vice president of education at OpenAI, told reporters during a briefing.
The company said student data will be protected and that anything shared within ChatGPT for Teachers will not be used to train its models.
OpenAI rocketed into the mainstream following the launch of its generic ChatGPT chatbot in 2022. It’s faced criticism from teachers and parents who argue that students can use the tool to cheat and avoid engaging in critical thinking.
ChatGPT for Teachers is not intended for students, but OpenAI said giving teachers hands-on experience with AI tools will help them understand and establish best practices in their classrooms.
“Every student today is growing up with AI, and teachers play a central role in helping them learn how to use these tools responsibly and effectively,” the company said in a blog post. “To support that work, educators need space to explore AI for themselves.”
In July, OpenAI released a product within ChatGPT called “study mode.” Study mode was built with college-age students in mind, and it aims to help them work through problems step-by-step before they arrive at an answer.
OpenAI said it built study mode as “a first step in a longer journey to improve learning in ChatGPT.”
WATCH: Investors believe OpenAI will become the largest hyperscaler: The Futurum Group CEO Daniel Newman
Block said Wednesday that it expects gross profit to increase in the mid-teens annually for the next three years, reaching about $15.8 billion in 2028.
At the payment company’s first investor day event since 2022, Block unveiled a three-year financial outlook. The announcements land as Wall Street has turned skeptical on Block’s prospects, pushing the stock down by more than 30% in 2025, while major indexes have notched solid gains.
Block shares were initially halted around the time of the announcement and then jumped 9% when trading resumed.
The fresh guidance also comes two weeks after Block reported quarterly results, missing revenue estimates for a sixth straight time. Block has been diversifying away from its point-of-sale business, which has become increasingly crowded, launching more services tied to Cash App and offering artificial intelligence tools to sellers.
Block said in its new outlook that adjusted operating income is projected to increase about 30% annually, topping $4.6 billion by 2028. Adjusted earnings per share will grow in the low 30% range, reaching $5.50 in three years.
Chief Financial Officer Amrita Ahuja told CNBC ahead of the release that the company is entering a new phase of execution.
Block vs. Nasdaq this year
“Since 2022, our last investor day, we’re nearly double the size from a gross profit perspective,” Ahuja said, adding that earnings before interest, taxes, depreciation and amortization “more than tripled.”
Block also introduced a new non-GAAP cash flow metric, designed to reflect the capital required to grow its lending products, which it expects to reach more than $4 billion, or 25% of gross profit, by 2028.
For 2026, Block expects gross profit to rise 17% to $11.98 billion, with adjusted operating income and EPS both increasing more than 30%, to $2.7 billion and $3.20, respectively.
Ahuja said Block has adopted a “rule of 40” investment framework. That typically refers to revenue growth rate plus profit margin exceeding 40. She said the company expects to reach that metric this year and has reorganized around a single roadmap with a shared technical infrastructure.
“That transformation has resulted in us moving faster, with more connected decisions across our ecosystem,” Ahuja said.
On Wednesday, Block also expanded its share repurchase program by $5 billion, adding to the $1.1 billion in remaining authorization as of Sept. 30. The prior buyback plan was for up to $4 billion in purchases.
Block CEO Jack Dorsey, who co-founded the company as Square in 2009, was in attendance at the investor event. Dorsey has largely been out of public view in recent years.
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