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.
Sam Altman, CEO of OpenAI, is seen through glass during an event on the sidelines of the Artificial Intelligence Action Summit in Paris, Feb. 11, 2025.
Aurelien Morissard | Via Reuters
Elon Musk tried to derail a major artificial intelligence infrastructure deal in the Middle East after learning that his startup, xAI, would be excluded from the initiative, CNBC has confirmed.
Earlier this month, OpenAI, Oracle, Nvidia, Cisco and Emirati firm G42 announced plans to build a sweeping Stargate AI campus in the United Arab Emirates. Musk was frustrated that OpenAI, led by personal rival Sam Altman, was tapped for the deal, and he intervened in an effort to get xAI involved, said a person familiar with the matter who asked not to be named in order to speak freely.
Musk argued that President Donald Trump would not approve the deal, the person said. The announcement was delayed by several days as stakeholders, including the White House, dealt with blowback from Musk, who has been engaged in a public and legal spat with Altman and OpenAI.
The Wall Street Journal first reported that Musk attempted to block the deal.
In a statement to CNBC, White House press secretary Karoline Leavitt didn’t mention the dustup.
“The United States and the UAE signed a groundbreaking framework agreement establishing the first AI acceleration partnership,” Leavitt said. “The framework advances the buildout of AI infrastructure in the United States and the UAE. This was another great deal for the American people, thanks to President Trump and his exceptional team.”
Musk wasn’t in the UAE when the deal was signed, but was with the president in Saudi Arabia during an earlier part of the Middle East trip, according to a senior White House official. The official said Musk has relayed his concerns about the government fairly treating all AI companies.
OpenAI declined to comment. Musk didn’t respond to CNBC’s request for comment.
Musk, who is also CEO of Tesla and SpaceX, is a complicating character in Trump’s effort to solidify U.S. leadership in AI. Musk spent close to $300 million to send President Trump back to the White House, and has since been leading the Department of Government Efficiency (DOGE), slashing the size of the federal workforce. His time as a special government employee is coming to an end this month.
When it comes to AI, Musk has in recent years been a vocal critic of Altman, a former friend and colleague. The pair helped form OpenAI as a research lab in 2015, but Musk later had a public break with the project and has consistently criticized its structure and close alliance with Microsoft.
While xAI has been building its commercial efforts, acquiring Musk’s social media company X in March and this week partnering with Telegram to roll out its Grok chatbot, Musk has been trying to thwart OpenAI’s effort to convert into a for-profit entity.
Musk has sued OpenAI for breach of contract and to try and stop the conversion, and a Musk-led investor group made an unsuccessful bid to buy control of the startup for $97.4 billion in February.
It’s also not the first time Musk has been critical of Stargate.
In January, Trump unveiled the Stargate project, with OpenAI, Oracle and Softbank committing an initial $100 billion, and up to $500 billion, of investment in AI infrastructure in the U.S. over four years. Musk was quick to cast doubt on the financing behind the project.
“They don’t actually have the money,” Musk wrote in response to an OpenAI post on his social platform X. He later added that SoftBank had “well under” $10 billion secured.
Two months later, SoftBank led a $40 billion investment in OpenAI at a $300 billion valuation.
— CNBC’s Eamon Javers contributed to this report.
WATCH: Elon Musk tried to block Sam Altman’s big AI deal in the UAE
A Dell Technologies sign is seen in Round Rock, Texas, on June 2, 2023.
Brandon Bell | Getty Images
Shares of Dell Technologies rose on Thursday in extended trading after the company raised its full-year earnings forecast and issued a stronger-than-expected forecast for the current quarter.
However, Dell’s adjusted earnings per share came up short versus LSEG estimates on in-line revenue.
Here’s how the computer maker did versus LSEG consensus estimates:
- Earnings per share: $1.55 adjusted vs. $1.69 estimated
- Revenue: $23.38 billion vs. $23.14 billion estimated
Dell said it expects $2.25 in adjusted earnings per share for the current quarter, with between $28.5 billion and $29.5 billion in revenue. That was significantly higher than LSEG expectations.
Company officials attributed the strong guidance to $7 billion in artificial intelligence systems that are expected to ship during the quarter, which are higher-margin than other Dell systems.
For the full year, Dell still expects about $103 billion in revenue, in line with LSEG expectations, but it raised its forecast for full-year adjusted earnings to $9.40, which was a 10 cent increase from the company’s prior outlook.
Dell is one of Nvidia’s primary vendors that builds systems around the chipmaker’s AI graphics processing units. Dell said on Thursday that it was seeing “unprecedented demand” for AI systems, especially for second-tier cloud providers, such as Coreweave.
Texas-based Dell said that it has $14.4 billion in confirmed orders for AI systems in its backlog that will ship in the coming quarters. It recorded $12.1 billion in confirmed AI orders during the first quarter, the company said. These numbers will turn into recorded revenue when Dell ships the system to its clients. In February, Dell said it expected $15 billion in AI server sales during its fiscal 2026, up from $10 billion last year.
Overall, Dell’s revenue grew 5% on an annual basis. It said it expects revenue to grow 8% during the fiscal year.
Dell’s server business is reported as part of its Infrastructure Solutions Group, which had $10.3 billion in sales during the quarter, a 12% rise. Of that, $6.3 billion was sales for servers and networking, and $4 billion was for computers that store data.
The company’s laptop and PC business, its Client Solutions Group, recorded $12.5 billion in sales as the global PC market is expected to recover this year after several slumping years.
The computer maker also said it significantly stepped up its shareholder capital return during the quarter, spending $2.4 billion on share repurchases and dividends during the period. It spent $2.58 billion on share repurchases for all of its fiscal 2025, which ended in January.
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