Deepwater Asset Management’s managing partners, Gene Munster and Doug Clinton have downplayed concerns that Alphabet Inc.’s GOOG GOOGL Google Search could be outdone by OpenAI’s SearchGPT.
What Happened: On Friday, Munster took to X, formerly Twitter, and said, “Since it’s only a 15-second video, it’s hard to see why SearchGPT is 10x better than Google AI Overviews.”
He went on to say that in the near term, this revives fears among Google investors that AI could threaten search. However, if the product’s capabilities are limited to what’s shown in the teaser, Google is not in any significant danger.
Doug Clinton, the other managing partner at Deepwater, concurred with Munster’s views. He said that although the SearchGPT video resulted in a minor dip in Google’s stock, it does not pose a substantial threat to Google’s AI.
“It didn’t seem 10x superior to what I’m observing from Google and AI overviews,” Clinton remarked in a separate video.
Both partners concurred that unless SearchGPT can offer something unique or more than what was shown in the teaser, it’s difficult to see why users would switch from Google.
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Why It Matters: On Thursday, Alphabet shares were trading lower after a report suggested that OpenAI plans to launch an online search tool called “SearchGPT” to disrupt Google's Search dominance.
Soon after, ChatGPT-parent, announced that it is testing SearchGPT, a temporary prototype of new AI search features. The launch is initially limited to a small group of users for feedback, with plans to integrate the experience into ChatGPT, the company stated.
Price Action: At the time of writing, Alphabet's Class A shares were down by 0.072% in after-hours trading to $166.88, while Class C shares dropped 0.018% to $168.65. During the regular session, Class A and Class C shares had closed at $167 and $168.68, respectively, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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