OpenAI Enters the AI Search Arena, Challenging Google and Microsoft

OpenAI has taken a bold step into the domain historically dominated by Google with the selective introduction of SearchGPT, a new artificial intelligence-powered search engine capable of real-time internet data retrieval.

A New Challenger in the Market

Announced on Thursday, this move places OpenAI in direct competition with Google, Microsoft’s Bing, and emerging AI-driven search services like Perplexity, which is supported by Amazon founder Jeff Bezos and Nvidia. This development sent Alphabet’s stock down by 3% on Thursday.

Prototype Phase and Future Integration

OpenAI has begun accepting sign-ups for SearchGPT, which is currently in its prototype phase, being tested by a small group of users and publishers. The company aims to eventually integrate the best features of this search tool into its flagship product, ChatGPT.

“AI-driven search tools from OpenAI and Perplexity reaffirm the significance of search as a model for content engagement, pushing Google to improve its own offerings,” stated Kingsley Crane, an analyst at Canaccord Genuity.

Market Dynamics and Features

Google currently holds a commanding 91.1% share of the search engine market, as reported by web analytics firm Statcounter. In contrast, SearchGPT aims to differentiate itself by offering summarized search results with source links and enabling users to ask follow-up questions for more contextual responses, according to an OpenAI blog post.

Publisher Collaboration

OpenAI is also offering tools for publishers to manage their content’s appearance in SearchGPT results. News Corp and The Atlantic are among the initial publishing partners. This initiative signals a deepening collaboration between OpenAI and content creators, following previous content licensing agreements with entities like the Associated Press, News Corp, and Axel Springer.

“New AI-powered search providers might face their own hurdles, with Perplexity already encountering pending legal challenges from publishers such as Wired, Forbes, and Condé Nast,” Crane noted.

AI Integration in Search Engines

Since the launch of ChatGPT in November 2022, major search engines have been striving to incorporate AI technology. Microsoft, an early investor in OpenAI, integrated its technology into Bing, while Google introduced AI-powered summaries to the public during its developer conference in May.

Google did not provide a comment to Reuters regarding the potential impact of SearchGPT on its business operations.

Previously, Reuters reported on OpenAI’s ambitions in the AI search space in May.