Alphabet Inc (NASDAQ:GOOG) shares are trading lower Tuesday after OpenAI launched ChatGPT Atlas, a competing web browser.
- GOOG shares are experiencing downward pressure. Follow the breaking news here.
What Happened: OpenAI on Tuesday announced the launch of ChatGPT Atlas, an AI-powered web browser that is being viewed as a threat to Google, according to AP News.
Alphabet shares are down about 2% following the Atlas announcement, according to Benzinga Pro.
The launch places the ChatGPT developer in head-to-head competition with Google as increasing numbers of internet users turn to artificial intelligence for answers to their queries.
Atlas will be immediately available on MacOS, with Windows, iOS and Android versions coming soon.
Why It Matters: Establishing itself as an entry point for online searches could give OpenAI — the world’s most valuable startup — the opportunity to drive additional internet traffic and capture associated digital advertising revenue. Although ChatGPT boasts over 800 million users, most utilize the service at no cost.
The report indicates that the San Francisco-based company currently operates at a loss and has been exploring profit-generation strategies like Atlas.
The browser debut arrives just months after an OpenAI executive shared the company’s interest in purchasing Google’s market-leading Chrome browser if a federal judge had mandated its divestiture to address antitrust violations. U.S. district judge Amit Mehta ultimately rejected the proposed Chrome sale requested by the Justice Department last month, citing his view that AI industry developments are already transforming competitive dynamics.
OpenAI is taking on an industry giant in offering a competition platform to Chrome, which serves roughly 3 billion users globally and has been integrating AI capabilities from Google’s Gemini platform.
It’s worth noting that when Google introduced Chrome in 2008, Microsoft’s Internet Explorer dominated so thoroughly that few believed a newcomer could pose a credible challenge. Chrome, however, rapidly gained traction by delivering faster page loads and additional benefits that ultimately disrupted the market.
GOOG Price Action: Alphabet shares are trading down 1.86% at $252.14 at the time of publication on Tuesday, according to Benzinga Pro. The stock is sitting 3.2% below its 52-week high and 7.1% above its 50-day moving average.
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