OpenAI to Launch AI Search Product, Challenging Google's Dominance

Written by Camilla Jessen

May.10 - 2024 8:27 AM CET

Technology
Photo: jamesonwu1972 / Shutterstock.com
Photo: jamesonwu1972 / Shutterstock.com
OpenAI plans to announce a competitor to Google search on Monday, according to sources.

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OpenAI is set to announce a new artificial intelligence-powered search product on Monday, potentially reshaping the competitive landscape of the search engine market.

This move positions OpenAI as a direct competitor to Google. The announcement is strategically scheduled a day before Google's annual I/O conference, where the tech giant is expected to showcase several AI-related innovations.

This development was reported by Reuters.

Strategic Timing and Development

OpenAI has declined to comment on the upcoming announcement.

However, sources familiar with the matter suggest that the timing and details, though subject to change, are part of a deliberate strategy to capitalize on the growing demand for AI-driven solutions in search technologies.

Bloomberg and The Information had previously reported that Microsoft-backed OpenAI was developing a search product poised to compete with giants like Alphabet's Google and the emerging AI search firm Perplexity.

This new product is an extension of OpenAI's popular ChatGPT, which allows the chatbot to pull real-time data from the web and integrate citations directly into its outputs.

Historically, ChatGPT has faced challenges with accuracy and timeliness in fetching online information. To address these issues, OpenAI previously integrated the chatbot with Microsoft’s Bing for its paid subscribers.

Emerging Competitors

In contrast, startup Perplexity, valued at $1 billion and founded by a former OpenAI researcher, has also been making significant strides.

It offers an AI-native search interface that not only provides citations but also incorporates images along with text in its search results. Perplexity currently boasts 10 million monthly active users.

Despite the initial success of ChatGPT, which quickly reached 100 million monthly active users after its late 2022 launch, OpenAI has witnessed fluctuations in user traffic over the past year.

These ups and downs have put pressure on the company to innovate and expand its user base.

An earlier initiative to enhance ChatGPT with real-time information, known as ChatGPT plugins, was discontinued in April.

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