WSJ Tech News Briefing: How to Ditch Google Search

Release Date: April 3, 2025
Host: Victoria Craig
Produced by: The Wall Street Journal

1. Major Merger: Social Media Giant X and AI Startup Xai

Overview

Elon Musk continues to redefine industry norms with a significant merger between his social media company, X, and the artificial intelligence startup, Xai. This unprecedented union between two private, Musk-owned entities has stirred considerable attention within the tech and financial communities.

Key Points

• Rationale Behind the Merger:
  Ben Glickman, WSJ Deals Reporter, explains that both X and Xai share substantial resources, including GPUs essential for AI processing. This synergy aims to consolidate Musk’s ventures, enhancing their technological capabilities and market presence.
  “There is some overlap and a rationale for why they would be working together,” Glickman notes (01:18).

• Valuation Concerns:
  The merger, structured as an all-stock deal, has drawn criticism for its unconventional valuation approach. Ben Glickman highlights that the exchange rate between the companies’ shares has led some observers to liken the valuation to “using Monopoly money to buy Pokémon cards.”
  “Structurally this deal would be exactly the same if they decided to value the company at $113 instead of $113 billion,” Glickman elaborates (01:54).

• Use of Shared Advisors:
  A notable irregularity is the use of identical legal and advisory teams for both companies, which is highly uncommon in large-scale mergers. Glickman remarks, “For a deal of this size, it is certainly unprecedented,” underscoring the uniqueness of this arrangement (03:29).

• Investor Confidence in Musk:
  The merger signals strong support from a dedicated group of private investors who trust Musk’s vision. Glickman points out that this backing reflects Musk’s solid standing within certain investment circles, despite the unconventional nature of the deal (04:15).

Conclusion

The merger between X and Xai exemplifies Musk’s distinctive approach to business, merging social media and artificial intelligence under a unified strategy. While the deal raises eyebrows due to its valuation and advisory overlaps, it underscores Musk’s influence and the confidence of his inner investor circle.

2. Breaking Away from Google Search: Joanna Stern’s Journey

Overview

WSJ Senior Tech Columnist Joanna Stern has taken a bold step by abandoning Google Search, citing frustration with its cluttered interface dominated by ads and sponsored links. Her transition to alternative AI-powered search solutions offers insights into the evolving landscape of internet search.

Key Points

• Reasons for Leaving Google:
  Joanna Stern shares her dissatisfaction with Google’s search experience, particularly the overwhelming number of ads and irrelevant results that hinder finding meaningful information.
  “Sponsored links, SEO junk, lots of ads. … finding an answer to a question became harder,” Stern explains (06:19).

• Adopting AI Alternatives:
  To replace Google, Stern turned to several AI-driven platforms, including ChatGPT, Anthropic’s Claude (with recent web integration), Perplexity, and Microsoft Copilot. She found Perplexity particularly effective for accessing real-time web information.
  “I actually found Perplexity to be one of the best ways to get real-time web information,” Stern notes (07:18).

• Replacing Google Maps:
  While AI tools excel in general search inquiries, Stern acknowledges that Google still outperforms alternatives in specialized areas like maps and local searches.
  “If you know that website you want to go to but you don't remember the exact URL, Google is still the quickest way,” she observes (07:43).

• Addressing AI Accuracy and Hallucinations:
  Stern voices concerns about the reliability of AI-generated answers, known as "hallucinations," where AI might provide inaccurate information. She emphasizes the importance of verifying sources and criticizes AI companies for making citation links too inconspicuous.
  “I also knocked these AI companies for making those citations so small,” Stern states (08:25).

• Google’s Response and Future of Search:
  In a conversation with Robbie Stein, Google’s Vice President of Product for Search, Stern explores Google's AI mode. Stein advocates for this new feature, highlighting its efficiency and potential to enhance user experience by providing cleaner, more direct answers compared to traditional search results.
  “This is why I think this is the future of Google search and search in general,” Stein asserts (10:25).

Conclusion

Joanna Stern’s departure from Google Search illustrates a growing trend toward AI-powered alternatives that prioritize user experience and efficiency. While AI tools offer significant improvements in information retrieval, challenges related to accuracy and source reliability remain. Google's advancement in integrating AI features signals an evolving search landscape aimed at addressing these user concerns.

Notable Quotes

• Ben Glickman on Merger Rationale:
  “There is some overlap and a rationale for why they would be working together.” (01:18)

• Ben Glickman on Valuation Criticism:
  “Structurally this deal would be exactly the same if they decided to value the company at $113 instead of $113 billion.” (01:54)

• Robbie Stein on AI Mode:
  “This is why I think this is the future of Google search and search in general.” (10:25)

• Joanna Stern on AI Citations:
  “I also knocked these AI companies for making those citations so small.” (08:25)

Final Thoughts

The episode "How to Ditch Google Search" delves into significant shifts within the tech industry, from high-profile mergers orchestrated by Elon Musk to individual tech leaders reassessing their reliance on established platforms like Google. These discussions highlight the dynamic nature of technology and the continuous pursuit of more efficient and user-friendly solutions.

For more insights and expert analysis, stay tuned to the Wall Street Journal’s Tech News Briefing.