Arc Browser developer The Browser Company explains why it was discontinued

The Browser Company has determined that its web browser, Arc , is merely an incremental improvement over existing browsers, and has concluded that in this era of technological change brought about by AI, it is necessary to fundamentally redefine what a browser should be. As a result, the company has decided to stop actively developing new features for Arc and to focus on developing a new AI browser, Dia , and has explained the details of this decision on its blog.

Letter to Aarc members 2025
https://browsercompany.substack.com/p/letter-to-arc-members-2025

The Browser Company first acknowledges three errors in its past decisions. First, it explains that it should have realized the data on Arc's growth and retention rate a year earlier and stopped development. Secondly, it cites that despite strong interest in AI technology, resistance to industry hype delayed bold and rapid adoption of the technology in its products. The third error was communication, stating that while it was overly transparent in announcing plans for its new product Dia before the details were finalized, it also failed to provide sufficient information, such as by delaying responses to users' questions.

In 2019, the shift to the web was accelerating, with all business processes now being done on the browser and cloud revenues soaring. However, the major browsers were still outdated and not keeping up with the changes. In response to this situation, Arc was developed with the desire to provide a product that was like a 'home on the internet' that was thoughtful and sensitive to the user.

Arc has created some enthusiastic fans, but for many average users, there are too many new features to learn and not enough value to be gained, The Browser Company said. Actual usage data showed that distinctive features such as Spaces and Live Folders were not used much, and the product had not penetrated the mass market. The fundamental problem, The Browser Company argued, was that Arc was an incremental improvement to existing browsers, not a major change that would take over the market, and that with AI transforming areas such as search engines and development environments, browsers needed a similar technological breakthrough.

Dia was developed as a new product rather than integrated into Arc in order to fundamentally solve the challenges faced by Arc. First, simplicity was pursued in Dia, reflecting on the complexity of Arc. In addition, performance was made the top priority, and the bloated architecture of Arc was completely redesigned to create a lightweight, highly responsive foundation built from scratch. In addition, in anticipation of the emergence of agents in the AI era, security was emphasized as the foundation of the product, and a specialized team was expanded. However, it was determined that such fundamental changes were too large to apply later to the existing Arc.

Active development of new features for Arc has been halted, but maintenance such as security updates continues. The company explained that while the request to open source it was considered, it is difficult to realize due to complex circumstances. Arc runs on the custom development platform 'ADK (Arc Development Kit)', which is the source of the company's competitiveness. This ADK is also the basis for the new product Dia, so it is not possible at this time to open source Arc in a meaningful way without compromising the company's value.

The Browser Company sees the transition to Dia not simply as a response to the shortcomings of Arc, but as an inevitable choice to respond to the major tectonic shifts of the age of AI. The company believes that the emergence of AI will see the end of the traditional browser's role, describing itself as 'retreating the candle business,' and predicts that 'in the future, AI browsers will combine the two, with web pages no longer being the primary interface and chat taking center stage, while web content will remain important.'

The Browser Company explained that Dia is a challenge to realize the ambitious goal of becoming an 'Internet Computer,' which has been the company's goal since its founding, and that the company is developing it to set the next generation standard.