OpenAI introduces new search platform: The battle for search engine dominance begins

OpenAI has introduced a new search service as part of its ChatGPT website and on Android and iOS apps. This innovation is seen by many as potentially the most significant threat to Google's dominant position in the search engine sector in years. Following the announcement, the share price of Google's parent company Alphabet fell by 1.5%, aligning with general declines in the technology sector. These losses reflect investor concerns about rising expenditures for AI infrastructures and customer adoption of the technology. In July, OpenAI, supported by Microsoft, tested a prototype of this search service. This newly introduced service combines comprehensive web information with specific content on weather, sports, stocks, news, and maps. The platform is based on the GPT-4o model and also uses data from third-party providers that have entered into cooperation agreements with OpenAI. The new functionality enables users to pose their search queries in an interactive manner and delve further into the responses provided. Additionally, OpenAI offers an extension for the Chrome browser, allowing ChatGPT to be set up as the default search engine. Currently, the service is available for ChatGPT Plus and team members, as well as individuals on the SearchGPT waitlist. Corporate and educational customers will be able to access it in the coming weeks, while free users will have to wait a few more months. Given the vast potential of GPT-supported search, the new service could pose serious competition to Google. This challenge comes at an inopportune time, as Google is already facing two antitrust proceedings concerning its dominance in search and advertising. Despite the threat, Google still holds an impressive market share of 90%, while the next competitor, Bing, reaches only 3.96%. Financially, Google remains robust: In the last quarter, advertising revenue reached $65.8 billion, surpassing analyst expectations and increasing compared to the previous year.