Artificial intelligence (AI) start-up OpenAI is reportedly planning to release an internet search browser in what’s being described as a direct challenge to Google parent company Alphabet (GOOGL).
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Reuters (TRI) was the first to report that OpenAI is planning to release an AI-powered web browser of its own to challenge Google Chrome. The move by OpenAI comes after rival AI start-up Perplexity launched its AI internet search engine called Comet.
OpenAI, which is best known as the company behind the ChatGPT, reportedly plans to release its web browser in coming weeks. Much like Perplexity’s Comet, OpenAI’s browser will use AI to rethink how users browse the internet.
Existential Threat
The browser may keep some user interactions inside ChatGPT instead of linking to external websites. The OpenAI browser may also integrate Operator, the company’s web-browsing AI agent, as a key feature that helps boost online search results.
Executives at OpenAI have talked publicly about building a browser to compete with Google for years. Much like Perplexity, OpenAI wants to get direct access to user data and have the freedom to create unique user experiences that aren’t intermediated by the Google search engine.
Competing web browsers are viewed by some Wall Street analysts as an existential threat to Alphabet’s dominance in online search through its Google portal.
Is GOOGL Stock a Buy?
The stock of Alphabet has a consensus Moderate Buy rating among 35 Wall Street analysts. That rating is based on 26 Buy and nine Hold recommendations issued in the last three months. The average GOOGL price target of $202.39 implies 16.08% upside from current levels.
