OpenAI Wants to Hammer Google

By Douglas A. McIntyre Published Jul 26, 7:10AM EDT

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OpenAI Wants to Hammer Google — © TARIK KIZILKAYA / Getty Images

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A new OpenAI product may challenge Google’s search engine market dominance.
Google has reason to be extremely anxious.
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Alphabet Inc.’s (NASDAQ: GOOGL | GOOGL Price Prediction) Google has been the dominant search engine since 2000, capturing over 95% of the U.S. search market. However, it may soon face real competition. OpenAI, the leading company in the artificial intelligence industry, plans to launch SearchGPT. Initially, some results will come from its media company partners.

According to the OpenAI website, “Getting answers on the web can take a lot of effort, often requiring multiple attempts to get relevant results. We believe that by enhancing the conversational capabilities of our models with real-time information from the web, finding what you’re looking for can be faster and easier.” Finding a statement that is a more significant challenge to Google’s dominance would be hard.

One reason Google should be extremely anxious is that OpenAI has created AI products at a feverish pace. While individuals can use most of its features for free, corporations have to pay a fee based on usage.

OpenAI has massive sums available to drive advances in its technology. Although it may lose as much as $5 billion this year, it has raised many times that, including $10 billion from Microsoft. OpenAI was recently valued at $80 billion.

Even if SearchGPT is a highly successful product, it will almost certainly take years to match Google’s success. In the most recent quarter, Alphabet had revenue of $84.7 billion. Of this, Google’s advertising business produced $64.6 billion. That makes it an extremely attractive target.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.