ChatGPT-parent, OpenAI has reportedly been developing a web search tool that could give Alphabet Inc.'s GOOG GOOGL Google a run for its money, something that Microsoft Corporation MSFT has been trying to do for ages.
What Happened: According to a source cited by The Information, OpenAI is in the process of developing a web search tool, with support from Bing, to offer more direct competition to Google.
However, it remains uncertain whether this tool will function independently or be integrated into ChatGPT, reported The Verge.
The development came a year later. Microsoft CEO Satya Nadella, who supports OpenAI, took aim at Google Search by incorporating Copilot AI tools into Bing.
See Also: OpenAI Shatters Records – Here’s How ChatGPT Propelled Revenue Beyond $2B
"I have a lot of respect for Sundar and his team so therefore I just want us to innovate right," Nadella said at the time.
Adding, "Today was a day where we brought some more competition to search. We’ve been at it, believe me, I’ve been at it for 20 years. I’ve been waiting for it. But look at the end of the day they’re the 800-pound gorilla on this, and I hope that with our innovation they will definitely want to come out and show that they can dance."
"I want people to know that we made them dance and I think that’ll be a great day," he stated.
Microsoft first invested $1 billion into OpenAI in 2019 and again in 2021. The tech giant added $10 billion to the investment tally last year.
However, while both OpenAI’s search tool and Bing Copilot aim to compete with Google, they may end up cannibalizing each other to some extent due to their overlapping functionalities and target audiences.
For instance, the platforms are likely to offer similar features such as intelligent search suggestions, natural language processing capabilities, and assistance in completing tasks, making it difficult for users to find that unique selling point or USP.
According to German database company Statista, as of July 2023, Bing holds approximately 10.51% of the global desktop search market, while Google, the leading competitor, commanded around 81.95%. Meanwhile, Yahoo accounted for 2.67% of the market share.
Why It's Important: Microsoft Bing and Alphabet's Google Search have an age-old rivalry.
In April last year, it was reported that Google employees were in a state of “panic” upon learning that Samsung Electronics Co, Ltd was contemplating substituting Google Search with Microsoft’s Bing AI as the primary search engine on its devices. However, Samsung later decided to continue its deal with Google.
Having said that, the integration of AI hasn’t notably shifted Bing’s struggle for relevance since its inception in 2009.
In January this year, it was reported that even after nearly a year, Bing’s share of the global search market has seen only a slight uptick to 3.4%. This is despite the incorporation of OpenAI’s generative AI technology.
Although the integration partially reversed this decline. In the U.S., the number of monthly active users more than doubled in the second quarter of 2023, and by the end of the year, Bing’s monthly active user count had steadily risen to 4.4 million.
Google continues to retain a dominant market position, with over 90% of the share. It is also the default search engine on Apple devices.
Apart from Google, Bing, and Yahoo – the three biggest search engines in the world- new players have also started working on gaining a share of the search behemoth's pie.
Previously, AI search engine startup, Perplexity AI CEO Aravind Srinivas expressed confidence in its product generative AI search capabilities to rival giants like Google Bard and OpenAI's ChatGPT.
Last month, The Browser Company introduced an iOS app, Arc Search, that combines a browser, search engine, and AI to provide a unique search experience.
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