OpenAI (NASDAQ:AI) is expected unveil its internet search engine next week and directly challenge the current search engine king, Google (NASDAQ:GOOG). According to Bloomberg and Reuters, the announcement could occur on Monday, the day before Google’s annual developer conference. The timing of the announcement seems to suggest that they are coming for Google’s business, as it could steal some of the big tech giant’s thunder. The timing could also be defensive, as Google is expected to announce that they have been working on a slew of AI-related products.
The high-tech industry is known for having its own circle of life, where disruptors overcome the disrupted. Next week, investors may see this classic battle of a king trying to be dethroned and fighting back. The announcement would underscore a critical reality for investors: the relentless pace of technological innovation demands a forward-thinking approach. Clinging to yesterday’s tech darlings could be a recipe for portfolio stagnation.
AI Search: A Shift in Thinking
OpenAI’s entry into the search engine field could represent a huge paradigm shift in how internet users discover and access information online. If adopted, it has the potential to surpass more conventional search engines, as AI-powered search offers a more intuitive and informative experience. However, users would need to retrain themselves and place trust in the results, as old habits are not easily broken.
Nevertheless, expectations are high. Imagine a conversational-style search engine that not only delivers relevant results but also provides real-time information, insightful analysis, and even includes citations for credibility. This is the future that OpenAI and its competitors envision.
Can Google Weather the Storm?
While OpenAI, along with its cutting-edge ChatGPT product, has substantial backing from Microsoft, the word “Google” remains synonymous with “search engine” for most users. Therefore, unseating Google would be incredibly challenging. Additionally, Google reported a net income of $74 billion last year, while OpenAI has yet to turn a profit.
Nevertheless, OpenAI has already captured the imagination of many. Its ChatGPT product was crowned the fastest application to ever reach 100 million monthly active users after its launch in late 2022. Furthermore, Microsoft (NASDAQ:MSFT) is a partner; the tech giant utilizes OpenAI support in many of its popular products like Excel, PowerPoint, and Word.
However, the road to disruption is never smooth. Google wasn’t always the search leader; it had to prove itself and build its vast user base and track record in search innovation. OpenAI (and other challengers) face an uphill battle in dethroning the established leader.
Key Takeaway
The expected announcement by OpenAI early next week could mark the beginning of the AI search battles. As history has shown, competition aimed at improving any service is beneficial to consumers. In this case, the competition involves one of the largest companies in the world and one that is still relatively unknown, unproven, and comparatively limited. Internet users, investors, and tech enthusiasts alike will be watching closely to see how this unfolds over time.
