OpenAI Issues Direct Assault On Google's Search Engine Dominance... (Alphabet Shares Fall)

Well Karma is a ****. And this Friday morning, Google is definitely getting some of it. As Sundar Pichai & Co. recently decided to rain on Meta’s parade by disrupting the Meta x Ray Ban partnership (with their wooing Gemini AI pitch)…

(Source: Giphy) 

Google is getting some of that good ol fashioned “What goes around comes around” as Open AI rolled up in a Delorean, hit 88 mph, and smacked it in the face with its new AI-powered search engine SearchGPT. 

(Source: CNN) 

So if you’ve been wondering when someone would take a real shot at Google (because who uses Bing anyway?), the wait is officially over. 

(Source: The Information) 

The news, according to reports, was dropped on twitter recently as Open AI made the announcement that SearchGPT is currently in alpha testing, with a growing waitlist. Read: ‘Waitlist’, doesn’t mean anything, considering every new tech announcement says that. However, Sam Altman didn’t hold back as he took direct shots at Google saying ““We think there is room to make search much better than it is today.” 

(Source: Wired) 

Now, while OpenAI may have put a number on Google’s days as the king of search, SearchGPT aims to be more than just another search engine. Unlike ChatGPT, which sometimes feels like it’s stuck in the past, and unlike other competitors like Ask Jeeves or Bing, this new tool not only pulls real-time data from the web, but it allows you to ask follow up questions as if you’re talking to a friend. In simpler terms, it will have the ability to give you the exact thing you are looking for and more, instead of just relevant keywords like Google. 

(Source: Giphy) 

Of course, this all comes to light as Google's attempts to integrate AI into its search engine have been about as successful as a screen door on a submarine. Their AI Overview feature stumbled out of the gate, offering some pretty questionable advice (glue on pizza, anyone?). 

(Source: Search Engine Land) 

But now, with SearchGPT in the picture, Google has some serious pressure on them to step up their game… or risk losing their crown. Plus, with Google’s stock dropping nearly 3% on the news, this is a clear sign that investors are concerned as well. 

(Source: CNBC) 

Keep in mind that in addition to threatening the search arena with this announcement, OpenAI is making savvy deals with publishers as well.  For instance, they’ve inked partnerships with big names like News Corp, Vox, and The Atlantic, ensuring that SearchGPT not only provides accurate info but also keeps the content creators happy. 

(Source: Wall Street Journal) 

This is crucial because publishers have been wary of AI tools that scrape their content without giving anything back. OpenAI’s solution? Let publishers manage how their content shows up in search results. It’s a win-win, and pretty dang smart for everyone involved… well, except Google of course. 

(Source: Giphy) 

So what does this mean for Google going forward?

Well simply put, they better buckle up and nut up. At the time of this writing Google is down -0.63% on the day, and even though the company has been hustling to integrate AI into everything from search to their office software, it’s no secret that they are facing a real challenge ahead. 

Why? Well because if OpenAI can deliver a search engine that’s reliable, user-friendly, and just plain better all around (because of AI, of course) then Google’s dominance will definitely be threatened. Think, Netflix and Blockbuster. 

“Did you just compare Google to Blockbuster dude?”

(Source: Giphy) 

Yes I did, and while that may “trigger” Google fanboys, the fact remains, Google isn’t as far ahead in the search engine AI game as most expected. It’s just that simple. Of course, they may be a few tweaks away to stay on top…

But when you’re facing a competitor like Sam Altman, it’s game-on baby… and Google better bring its A-game. 

(Source: Giphy) 

Stocks.News holds positions in Google, Netflix, and Meta Platforms as mentioned in the article.