The company 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 continue to prosper.

The Justice Department is looking to break up one of America’s most powerful companies following a court ruling in September that found Google violated antitrust law. Shares of Google-parent Alphabet plunged over 5% Thursday after prosecutors outlined proposed remedies that would significantly alter how the search giant conducts its business.