The Browser Company Weighs Selling or Open-Sourcing Arc as It Shifts Focus to AI-Driven Dia

The Browser Company announced on May 27, 2025, that it is exploring options to either sell or open-source its Arc Browser as it pivots resources toward developing Dia, a new AI-powered browser.

Arc, which is recognized for its experimental design, has not received any new features since the company unveiled Dia in December 2024; however, it continues to receive bug fixes and security updates.

CEO Josh Miller, in a blog post, acknowledged Arc’s challenges, noting that its complexity and novelty deterred mainstream adoption. “For most people, Arc was simply too different, with too many new things to learn, for too little reward,” Miller wrote, highlighting the browser’s lack of cohesion in features and values.

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Challenges in Open-Sourcing Arc

While many Arc users have advocated for open-sourcing the browser, The Browser Company faces a significant hurdle. Arc is built on the Arc Development Kit (ADK), an internal SDK that also underpins Dia, the company’s new flagship project.

Open-sourcing Arc would require releasing the ADK, which Miller stated is central to the company’s value and intellectual property. “We’d love to open-source Arc someday, but we can’t do that meaningfully without also open-sourcing ADK,” he explained.

Real-time sentiment from tech communities reflects a split opinion, with some users hopeful for an open-source future, while others speculate that a sale to a larger tech firm could preserve Arc’s legacy.

Did You Know?
Arc Browser gained a cult following for its sidebar-based interface, which allowed users to manage tabs, notes, and apps in a single window, a feature that inspired similar designs in competing browsers.

The Rise of Dia and Arc’s Legacy

The Browser Company’s shift to Dia reflects its ambition to create a more accessible, AI-driven browsing experience for a broader audience. Dia aims to address Arc’s shortcomings by offering a streamlined, user-friendly interface powered by artificial intelligence, a trend gaining traction in the tech industry.

Real-time data from recent browser market analyses indicates that AI-powered browsers are projected to capture 15% of the market share by 2027, up from 3% in 2024, underscoring the strategic pivot.

Meanwhile, Arc’s experimental charm continues to resonate with a niche user base, leaving its future uncertain but its impact on browser innovation undeniable.

What Lies Ahead for Arc?

The Browser Company’s decision will shape Arc’s trajectory, whether it finds a new home through a sale, thrives as an open-source project, or fades into obscurity. The company has no plans to shut down Arc entirely, but its focus is firmly on Dia’s development.

As the browser landscape evolves, the outcome of this pivot could set a precedent for how companies balance innovation with legacy products in the fast-paced tech sector.