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I don't understand the reasoning behind Kagi developing a browser. Such a small team would gain more from partnering with the likes of Mozilla/Vivaldi/etc IMO
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Browsers being broken is very closely related to Google/search being broken.
I assume it's the same reason that Google decided to develop its own browser
Google was vastly better resourced though when they started Chrome. They even waited for many years because Eric Schmidt thought the company was still too small to enter the browser wars.