OpenAI's SearchGPT: A Direct Challenge to Google

OpenAI has unveiled a new prototype search engine called SearchGPT. This development has the potential to transform the way users search for information online, positioning the company to challenge Google's current dominance in the search market. 

SearchGPT, currently in the testing phase, will be based on a Retrieval Augmented Generation (RAG) approach, which combines text generation with data retrieval from trusted, up-to-date sources. Unlike traditional search engines that present lists of links, SearchGPT will provide direct and detailed answers, improving the accuracy and relevance of the information provided. The tool will also have the ability to clearly cite and link to information sources.

“Conversational search will be a key feature, allowing users to interact dynamically with the search engine, asking follow-up questions and getting more accurate and contextual answers,” reads OpenAI's press release. 

Additionally, SearchGPT will benefit from OpenAI's advanced AI infrastructure, which includes OpenAI's latest language model (ChatGPT-4o) and robust data processing capabilities. The search engine will also support multimodality, handling diverse media types such as text, images, and audio. 

Sam Altman, CEO, OpenAI, stressed in a post on X that there is ample room to improve web search beyond current capabilities. “We will learn from the prototype, make it better, and then integrate the tech into ChatGPT to make it real-time and maximally helpful,” reads Altman's post. 

Modernizing Traditional Search Engines

In May, Google introduced AI Overview, a feature intended to provide summaries of answers at the top of search results, in an attempt to modernize its search engine. However, although Google has been working on AI Overview for more than a year, users reported inaccurate results, raising concerns about the reliability of the new feature.

Microsoft launched an AI-powered version of Bing in 2023, based on OpenAI language models. This search engine has been one of the first to incorporate generative AI capabilities. Despite its efforts, Bing experienced inadequate responses and marginal growth in market share. 

The SearchGPT announcement has shown immediate implications for Google, the market leader in the online search engine market, causing Alphabet's shares to experience a downward trend since the announcement was made last Thursday. This also highlights general concerns about how new search tools could impact the financial performance of established technology companies, CNBC notes.

“It is incredibly difficult to offer a search tool that is measurably better than what people are used to,” said Richard Socher, CEO, You.com.