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What a morning it’s been in the market! Google (NASDAQ:GOOG) (NASDAQ:GOOGL) saw a 1.5% slip in premarket
trading on Thursday. Reports suggest OpenAI is gearing up to launch a web search product that could put it in direct competition with the tech giant led by Sundar Pichai.
OpenAI’s Potential Move
If reports are true, OpenAI’s search service might be partially powered by Microsoft’s (NASDAQ:MSFT) Bing, as per The Information. Last year, Microsoft made a hefty investment in the Sam Altman-led company, integrating its technology into various products and services, including Bing.
At present, neither Microsoft, OpenAI, nor Google has responded to Seeking Alpha’s request for comment. It remains unclear if this potential search product would stand apart from OpenAI’s ChatGPT, which took the tech world by storm in late 2022, sparking the current craze for generative artificial intelligence.
Google’s Ongoing Dominance and Threats
Google has reaped approximately $150 billion in revenue from search ads and has steadfastly held onto roughly 90% of the search market. However, ChatGPT has started to gnaw into Google’s market share, as indicated by a November analysis by Bank of America.
Last year, Microsoft’s Chief Financial Officer Amy Hood mentioned that every percentage point of Bing’s gain translated to around $2 billion in advertising revenue.
