OpenAI is reportedly developing its own search product to compete with Google (GOOG, GOOGL). But ChatGPT's creators will need more help if they want to put any dent in the search giant's armor.
According to this information, OpenAI is hard at work developing a search product that incorporates generative AI capabilities that are partially powered by Microsoft (MSFT) Bing. Microsoft has invested billions of dollars in OpenAI and uses some of the company's technology to run his Copilot AI software products for Microsoft 365 and Windows.
In February 2023, Microsoft announced that it would aim to take Google's search lead with a new version of its Bing search engine that leverages OpenAI's GPT technology. But now it's February 2024, and Microsoft is far from cutting into Google's market share.
At the time, Microsoft said just 1% of its search advertising market share was worth $2 billion in annual revenue. CEO Satyanadera called this a “new day for search” and said his AI-powered version of Bing represents a new paradigm for search.
But a year later, Microsoft's Bing efforts appear to have stalled. The company's search engine had a market share of just 3.43% in January 2024, an increase of less than 1% from the same period last year, according to StatCounter. Google, on the other hand, controlled 91.46%, down less than 1% from last year.
If you flip scripts on OpenAI products that run on top of Bing, you'll face the same hurdles. However, ChatGPT's popularity could push the search service further than Bing.
But it's not just the fact that Google is so popular. The company is also integrating generative AI into its search products. This feature displays AI-generated responses to your searches right below the search box at the top of your screen. A list of legacy search links appears below the Generate AI box.
And while Microsoft has enjoyed a healthy advantage over Google in speed of bringing generative AI products to market, Google isn't far behind.
Microsoft continues to lead the enterprise space thanks to its generative AI products built into its productivity software and various cloud computing products.
But when it comes to search, it's still all Google. And even if OpenAI popularizes the generative AI craze, the company has a long way to go if it wants to take down the search giant.
Daniel Howley I'm the technology editor at Yahoo Finance. He has been covering the technology industry since his 2011. You can follow him on Twitter. @Daniel Howley.
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