Alphabet: Should GOOGL, Microsoft Be Worried About OpenAI Search Engine?

With the artificial intelligence company announcing its newly developed platform, should Alphabet (GOOGL) and Microsoft (MSFT) be worried about the OpenAI-developed search engine? Google is undoubtedly the top search engine in the world, but could it be threatened by the emergence of an AI-focused alternative?

For the last several years, companies have sought to infuse artificial intelligence into a host of online products. This has been the case for both companies, as the emerging technology has become a key part of Bing and Google. Now, there is a chance they will have to contend with a new GPT-reliant offering that could capture notable attention.

Source: Yahoo Finance

Also Read: Alphabet Revenue up 15% as AI, Cloud Growth Has GOOGL Surging

Alphabet & Microsoft Investors Show Concern Over OpenAI Competition

For the last two years, AI has experienced a massive boom in terms of its interest and demand. That was primarily due to the arrival of OpenAI’s ChatGPT. The generative chatbot enjoyed a meteoric rise that completely shifted the interests of the Wall Street information technology sector.

Now, some of the biggest companies in the world are going to have to take the company on. Specifically, both Alphabet (GOOGL) and Microsoft (MSFT) are going to have to contend with an OpenAI search engine. Using its GPT technology, it is looking to make a splash and target some of the company’s overwhelming market share.

Source: Forbes

Also Read: Alphabet: Why Analysts Believe GOOGL is On its Way to $500

Investors seem to have shown a bit of concern regarding the development. After the announcement, GOOGL fell 2%. Moreover, the announcement drove MSFT to drop as much as 6% in a massive reaction. The worry comes regarding consumer preference for the ChatGPT Search platform over the traditional search engine options.

In a blog post announcing the project, OpenAI stated that the search engine was built through news partnerships. Specifically, alignment with The Associated Press and News Corp. . will strengthen its output. Indeed, they note that content shared on the engine will have sources and links attached.

Alphabet investors have long been concerned about OpenAI’s foray in the field. Yet, the reaction of Microsoft is rather interesting. The company has invested more than $14 billion into the AI developer. Moreover, they recently confirmed that the investment will begin cutting into profits. Therefore, how the competition sorts out will be a key point of observation.

  • Alphabet
  • google
  • Microsoft
  • OpenAI
  • stock

Comments

Post a Comment

Popular posts from this blog

Bybit seeks crypto license in Hong Kong

Cryptocurrency exchange Bybit has applied for a Virtual Asset Service Provider (VASP) license in Hong Kong, according to regulatory filings. Bybit has joined the list of 14 applicants seeking a license from the Securities and Futures Commission (SFC) to offer services in Hong Kong. According to the regulatory filing submitted on Jan. 31, Bybit wants to offer services in the region through Spark Fintech Limited. The timing and approval status of Bybit’s application by the SFC remains unclear, as other crypto businesses, including OKX, are still awaiting regulatory approval. Thus far, only two companies, OSL Exchange and HashKey Exchange, have received a crypto trading license from the SFC. As of press time, Bybit has not issued any public statements regarding the application. Bybit expressed interest in expanding services in Hong Kong in April 2023, when the Dubai-based crypto exchange outlined plans to establish its central Asian business there. As crypto .news reported, Bybit
Read more

Rise of Spot Bitcoin ETFs: U.S. Surges Past Canada, What’s Next?

The U.S. now dominates the global Bitcoin ETF market with 83.3% of the share. Spot Bitcoin ETFs globally encapsulate 4% of the total Bitcoin supply. Grayscale Bitcoin Trust leads the market but is challenged by notable net outflows. The United States has surged ahead in the global spot Bitcoin ETF (Exchange-Traded Fund) market, according to a Coingecko report. Currently, the country has an 83.3% share, the highest globally. This shift underlines institutional and retail investors’ increasing interest in cryptocurrency investments. Investors likewise embrace Bitcoin spot ETFs and other similar tools. A network of 11 countries comprising major economies and tax havens lay the root of the BTC exchange, where the trading is primarily focused on six key markets. Significantly, the U.S. dominance is evident in the substantial $34.78 billion assets held across its 10 approved ETFs. This leap has been monumental, considering the total global market valuation is $
Read more

London High Court hears allegations of Craig Wright’s forgeries

In a crowded and overheated courtroom on Monday, Crypto Open Patent Alliance (COPA) presented evidence that Craig Wright is pretending to be Bitcoin’s creator, Satoshi Nakamoto. The London High Court case stars Wright in the role of defendant for a change. COPA members Coinbase, MicroStrategy, and more are suing to stop Wright’s litigious spree against Bitcoin developers. Led by a grant from Jack Dorsey, COPA alleges that Wright not only failed to produce conclusive evidence of his identity, but also made errors in his alleged forgeries . Wright will appear in court throughout the week to make his most public conviction that he is, in fact, Satoshi . I’m sitting in Courtroom 30 in the the Rolls Building in London in the row behind Craig Wright during the COPA trial the most important Financial trial this century. At stake the freedom of software developers to innovate – which you know I wil always fight for. The… pic.twitter.com/GNWJEoafvJ — Wasim Ahmad (@wasima) February 5, 2024
Read more