With the artificial intelligence company announcing its newly developed platform, should Alphabet (GOOGL) and Microsoft (MSFT) be worried about the OpenAI-developed search engine? Google is undoubtedly the top search engine in the world, but could it be threatened by the emergence of an AI-focused alternative?
For the last several years, companies have sought to infuse artificial intelligence into a host of online products. This has been the case for both companies, as the emerging technology has become a key part of Bing and Google. Now, there is a chance they will have to contend with a new GPT-reliant offering that could capture notable attention.
Also Read: Alphabet Revenue up 15% as AI, Cloud Growth Has GOOGL Surging
Alphabet & Microsoft Investors Show Concern Over OpenAI Competition
For the last two years, AI has experienced a massive boom in terms of its interest and demand. That was primarily due to the arrival of OpenAI’s ChatGPT. The generative chatbot enjoyed a meteoric rise that completely shifted the interests of the Wall Street information technology sector.
Now, some of the biggest companies in the world are going to have to take the company on. Specifically, both Alphabet (GOOGL) and Microsoft (MSFT) are going to have to contend with an OpenAI search engine. Using its GPT technology, it is looking to make a splash and target some of the company’s overwhelming market share.
Also Read: Alphabet: Why Analysts Believe GOOGL is On its Way to $500
Investors seem to have shown a bit of concern regarding the development. After the announcement, GOOGL fell 2%. Moreover, the announcement drove MSFT to drop as much as 6% in a massive reaction. The worry comes regarding consumer preference for the ChatGPT Search platform over the traditional search engine options.
In a blog post announcing the project, OpenAI stated that the search engine was built through news partnerships. Specifically, alignment with The Associated Press and News Corp. . will strengthen its output. Indeed, they note that content shared on the engine will have sources and links attached.
Alphabet investors have long been concerned about OpenAI’s foray in the field. Yet, the reaction of Microsoft is rather interesting. The company has invested more than $14 billion into the AI developer. Moreover, they recently confirmed that the investment will begin cutting into profits. Therefore, how the competition sorts out will be a key point of observation.