OpenAI announced the prototype of its new search engine, SearchGPT, on Thursday. This innovative tool aims to deliver users “fast and timely answers with clear and relevant sources.” Currently being tested with a select group of users, OpenAI plans to integrate SearchGPT into its ChatGPT chatbot eventually.
This development could significantly impact Google and its dominant search engine. Since the launch of ChatGPT in November 2022, Alphabet investors have been concerned about OpenAI potentially capturing market share by offering consumers new ways to seek information online. SearchGPT promises a more natural and intuitive search experience, allowing users to ask follow-up questions as they would in a conversation. “We believe there is room to make search much better than it is today,” OpenAI CEO Sam Altman wrote in a post on X.
Following the announcement, Alphabet shares dropped over 3% on Thursday, closing at $167.28, while the Nasdaq declined by less than 1%.
In response to the competitive pressure, Google launched AI Overview in May, which CEO Sundar Pichai described as the most significant change in search in 25 years. However, public criticism arose due to the AI feature returning nonsensical or inaccurate results, with no option to opt-out. “Google has been uneasy since generative AI emerged,” noted Daniel Fagella, founder and head of research at Emerj Artificial Intelligence Research. “While the company hasn’t crumbled, it has stumbled.”
The SearchGPT announcement follows OpenAI’s recent launch of the “GPT-4o mini” AI model, an offshoot of its most powerful model to date, GPT-4o. OpenAI, valued at over $80 billion, is under pressure to maintain its leadership in the generative AI market while finding revenue streams to support its substantial infrastructure and development costs.
Last month, OpenAI strengthened its leadership team with the addition of two top executives and announced a partnership with Apple, integrating ChatGPT with Siri. Sarah Friar, former CEO of Next-door and finance chief at Square, joined as CFO, and Kevin Weil, ex-president at Planet Labs and former senior vice president at Twitter and Facebook, joined as chief product officer.
These moves are part of OpenAI’s strategy to lead in “multimodality,” offering a range of AI-generated media, including text, images, audio, video, and search within ChatGPT. According to a blog post, SearchGPT’s visual results aim to provide users with a “richer understanding.”
“The world is multimodal,” OpenAI COO Brad Light cap told CNBC last year. “As humans engage with the world, we see, hear, and say things. Limiting interactions to text is insufficient.”
