OpenAI’s SearchGPT set to challenge Google’s search dominance

OpenAI has revealed a prototype of its search engine, SearchGPT, designed to deliver fast and timely answers with clear and relevant sources. This new tool, which is currently in alpha testing with a small group of users, aims to eventually integrate with OpenAI’s popular chatbot, ChatGPT.

The prototype aims to deliver swift and correct information with clear and related references to make it more useful for the user. The new feature also uses follow-up questions to let users expand on context in the same way as one would do in a dialog with a person. This conversational interface is designed to enhance the user experience during the search process. 

OpenAI shakes Alphabet’s market and addresses publisher concerns

In response to the announcement , Alphabet Inc. (GOOG, GOOGL) shares experienced a slight dip. According to Statcounter data , Google is still the most popular search engine, with a 91% share of the market covering all devices.

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However, even a small change in the market share could be beneficial for OpenAI. Microsoft’s Bing, which also uses generative AI, offers a precedent for the possible revenue streams; a 1% change in search advertising market share translates to $2 billion in yearly revenue. 

Generative AI has been considered problematic by the publishers because summaries created by AI can lead to less traffic on the websites and less ad revenue. In response to these concerns, OpenAI has made some changes to SearchGPT to include links to sources and publishers’ websites. This strategy is intended to help preserve and possibly even strengthen the link between consumers and producers of the original content. 

“SearchGPT is designed to help users connect with publishers by prominently citing and linking to them in searches. Responses have clear, in-line, named attribution and links so users know where information is coming from and can quickly engage with even more results in a sidebar with source links.”

OpenAI

In addition, OpenAI explained that the SearchGPT results are distinct from the data that the firm uses to train its AI models. However, search results on SearchGPT will not be affected, and publishers who have chosen not to share their data for training purposes will still be visible.  In their blog post, OpenAI noted that SearchGPT’s visual outputs are intended to give users a more complete picture.

The release of SearchGPT comes in the wake of the latest AI model released by OpenAI, known as GPT-4o mini. This new model is the GPT-4o, its derivative, and is the fastest and most powerful model from OpenAI to date. GPT-4o mini was unveiled in May during a livestream event where the startup revealed further progress in the field of AI.

SearchGPT challenges Google’s AI-enhanced search offering

Google has also integrated generative AI into its search product through AI Overviews that offer summarized information from websites in a single paragraph with links. However, SearchGPT is based on generative AI and may provide a more consistent user interface. If successful, this could give OpenAI a competitive edge over Google’s add-on approach.

Despite these advancements, the use of generative AI in search engines has not been without its problems with regard to reliability. Google faced difficulties with AI Overviews right after its release since the function suggested some incorrect and sometimes ridiculous options like applying glue to the pizza or eating rocks.