OpenAI to announce AI-powered search engine to compete with Google

OpenAI search engine: OpenAI is set to announce its AI-powered search product next Monday, sources familiar with the matter revealed, intensifying its rivalry with Google in the search arena.

While the announcement date is subject to change, it has not been previously disclosed. Reports from Bloomberg and the Information suggest that OpenAI, backed by Microsoft, is developing a search tool to compete with Google and Perplexity, a well-funded AI search startup.

OpenAI declined to comment on the upcoming announcement, which could strategically precede Google's annual I/O conference beginning Tuesday, where the tech giant is anticipated to reveal numerous AI-related innovations.

The forthcoming search offering from OpenAI builds upon its flagship ChatGPT product, enabling it to fetch direct information from the web along with citations. ChatGPT, OpenAI's chatbot, uses advanced AI models to generate human-like responses to text prompts.

Observers have long regarded ChatGPT as an alternative for sourcing online information, although it has encountered challenges in delivering accurate and real-time web content. OpenAI previously integrated it with Microsoft's Bing for paid subscribers. Google, on the other hand, has introduced generative AI features for its search engine.

Perplexity, valued at $1 billion, was established by a former OpenAI researcher and has gained traction with its AI-native search interface, displaying citations and images alongside text in search results. The startup claims 10 million monthly active users, according to a January blog post.

Previously hailed as the fastest application to reach 100 million monthly active users after its late 2022 launch, ChatGPT's website traffic has fluctuated over the past year, only recently returning to its peak in May 2023, according to analytics firm Similarweb. OpenAI faces pressure to expand its user base, having retired an earlier attempt to incorporate real-world information into ChatGPT, known as ChatGPT plugins, in April, as per a help centre posting on its website.

(With Reuters inputs)