This is precisely what Microsoft did to Google. They had Bing running in the background for years losing truckloads of money. Now that AI has upset the applecart, they can use Bing to choke off Google's airsupply.
One of the reasons for Google getting so good early on was that they had oodles of usage data to test and improve their search functionality forming a positive feedback loop. Now, with deals such as this, Microsoft will have more data to tune their engine while Google is left on the sidelines.
Let's just hope that the AI driven search revolution does not produce a monopoly.