Privately held start-up OpenAI has launched a new online search feature within ChatGPT in a direct challenge to Alphabet’s (GOOGL) dominant Google search engine.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
ChatGPT is the artificial intelligence (AI) chatbot that OpenAI launched nearly two years ago. The new search feature, called “SearchGPT,” offers up-to-the-minute sports scores, stock quotes, news, weather updates, and more, powered by AI and partnerships that OpenAI has struck with news and data providers such as Thomson Reuters (TRI) and the Associated Press.
SearchGPT has clear implications for Google, which controls 90% of the market for online search. Somewhat ironically, OpenAI’s new search feature also could impact Microsoft’s (MSFT) Bing search engine, which controls about 4% of the global market, as well as its Copilot AI assistant. Microsoft is OpenAI’s biggest backer, having invested about $14 billion in the AI company.
The Race to Launch New AI Tools
OpenAI says SearchGPT will enable people to search the internet in a more natural, intuitive, and conversational way. The search function that’s being launched is a version of OpenAI’s most powerful AI model to date, called “GPT-4o,” and is fueled largely by content provided from news sources.
The launch of SearchGPT comes as companies such as Alphabet, Microsoft, and others, race to bring new AI technologies and enhancements to consumers. The new AI-powered search function also comes at a time when Alphabet faces multiple anti-trust lawsuits accusing it of operating a monopoly in online search.
Is MSFT Stock a Buy?
As OpenAI is privately held, we look to its biggest investor Microsoft. The stock of Microsoft has a consensus Strong Buy rating among 30 Wall Street analysts. That rating is based on 27 Buy and three Hold recommendations assigned in the last three months. The average MSFT price target of $503.15 implies 22.85% upside from current levels.
