OpenAI challenges Google with SearchGPT

The introduction of SearchGPT by OpenAI, an AI-powered search engine with real-time internet access, challenges Google’s dominance in the search market. Announced on Thursday, the launch places OpenAI in competition not only with Google but also with its major backer, Microsoft, and emerging AI search tools like Perplexity. The announcement caused Alphabet’s shares to drop by 3%.

SearchGPT is currently in its prototype stage, with a limited number of users and publishers testing it. The tool aims to provide summarised search results with source links, allowing users to ask follow-up questions for more contextual responses. OpenAI plans to integrate SearchGPT’s best features into ChatGPT in the future. Publishers will have access to tools for managing their content’s appearance in search results.

Google, which holds a 91.1% market share in search engines, may feel the pressure to innovate as competitors like OpenAI and Perplexity enter the arena. Perplexity is already facing legal challenges from publishers, highlighting the difficulties newer AI-powered search providers might encounter.

SearchGPT marks a closer collaboration between OpenAI and publishers, with News Corp and The Atlantic as initial partners. This follows OpenAI’s content licensing agreements with major media organisations. Google did not comment on the potential impact of SearchGPT on its business.