Just 3 weeks after the failure of buying Yahoo the software giant Microsoft has gone ahead and bought Powerset the start-up company that specializes in "semantic Web" technology that brings up results based on an understanding of a word's meaning and the context of its use. That's in contrast to the method used by the major search engines like Google and Yahoo, which work primarily by matching words in queries to those on Web pages.

This purchase will give Microsoft a big lead in competing with Google. It will also increase the market share of Microsoft in terms of online advertising.
 
Some undisclosed sources has put the value of the deal as $ 100 million. Google has already build a team to develop a semantic search technology without any breakthrough so far.

This deal definitely gives Microsoft a great advantage to compete with Google