Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) shares are trading lower Thursday following reports that OpenAI is planning to build a web search tool to compete with Google.
What To Know: According to a new report from The Information citing a person with knowledge of the company’s plans, OpenAI is developing a web search product to directly compete with Google.
OpenAI, the company behind ChatGPT, is backed by Microsoft Corp (NASDAQ:MSFT). The report indicates that the new search tool may be powered by Microsoft’s search engine product Bing. It’s not clear if the product will be a standalone offering separate from ChatGPT.
The news comes after Microsoft made a push to integrate ChatGPT technology into its Bing search engine after ChatGPT popularity soared last year. Alphabet announced its own AI-powered search engine just months later.
According to data from Statista, Bing had approximately 10.5% of the total desktop search market as of July 2023, while Google accounted for approximately 82% of the global market. Google’s search dominance is even greater on mobile devices.
Google reported fourth-quarter financial results at the end of January. The tech giant reported total fourth-quarter revenue of $86.31 billion. Search accounted for $48.02 billion of the company’s quarterly revenue, up from $42.6 billion on a year-over-year basis.
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GOOG Price Action: Alphabet shares were down 3.45% at $142.08 at the time of publication, according to Benzinga Pro.
Photo: Solen Feyissa from Unsplash.
