The artificial intelligence company OpenAI stands on the verge of unveiling an AI-driven web browser that will directly compete with Alphabet's market-leading Google Chrome, according to three sources with knowledge of the development who spoke to Reuters.
The new browser will debut in the next few weeks, as confirmed by three individuals familiar with the project, and seeks to employ artificial intelligence to revolutionize consumer web browsing experiences, Reuters reported. This development would provide OpenAI with more immediate access to a fundamental element of Google's success – user data collection.
Should OpenAI's 400 million weekly active ChatGPT users embrace this browser, it could significantly impact a crucial element of Google's advertising revenue stream, sources told Reuters. Chrome serves as a vital foundation for Alphabet's advertising operations, which generate nearly three-quarters of the company's total revenue, by supplying user information that enables Alphabet to target advertisements more effectively and profitably while directing search traffic to Google's own search engine as the default option.
The OpenAI browser will be engineered to maintain certain user interactions within a ChatGPT-style native chat interface rather than requiring users to navigate through traditional websites, two sources revealed.
This browser development forms part of OpenAI's comprehensive strategy to integrate its services throughout consumers' personal and professional digital experiences, one source explained.
OpenAI chose not to provide commentary on the matter.
The sources requested anonymity because they lack authorization to discuss the matter publicly.
Under entrepreneur Sam Altman's leadership, OpenAI transformed the technology industry with its AI chatbot ChatGPT's debut in late 2022. Following its initial triumph, OpenAI has encountered intense competition from competitors including Google and startup Anthropic, prompting the company to explore new growth opportunities.
OpenAI announced its entry into the hardware sector in May, investing $6.5 billion to acquire io, an AI devices startup founded by Apple's former design chief, Jony Ive.
A web browser would enable OpenAI to seamlessly incorporate its AI agent products, such as Operator, into the browsing experience, allowing the browser to execute tasks on users' behalf, sources indicated.
The browser's ability to access user web activity would establish it as the optimal platform for AI "agents" capable of performing actions on users' behalf, such as making reservations or completing forms, directly within the websites they frequent.
Tough competition
OpenAI faces significant challenges ahead – Google Chrome, utilized by more than 3 billion individuals, currently commands over two-thirds of the global browser market, according to web analytics company StatCounter. Apple's second-ranked Safari trails considerably with a 16% market share. OpenAI reported 3 million paying business users for ChatGPT last month.
Additional AI startups including The Browser Company and Brave have introduced AI-powered browsers capable of executing actions on users' behalf this year. Perplexity, a well-funded startup recognized for its search engine, also launched its AI browser, Comet, on Wednesday.
Chrome's function in supplying user information to help Alphabet target advertisements more effectively and profitably has proven so successful that the Department of Justice has demanded its divestiture after a US judge ruled last year that the Google parent maintains an unlawful monopoly in online search.
OpenAI's browser operates on Chromium, Google's open-source browser code, two sources confirmed. Chromium serves as the source code for Google Chrome and numerous competing browsers including Microsoft's Edge and Opera.
OpenAI recruited two veteran Google vice presidents last year who were members of the original team that created Google Chrome. The Information first reported their hiring and that OpenAI previously contemplated building a browser.
An OpenAI executive testified in April that the company would consider purchasing Chrome if antitrust enforcers succeeded in forcing the sale.
Google has not made Chrome available for sale. The company has stated it plans to appeal the ruling that it maintains a monopoly.
OpenAI chose to develop its own browser rather than simply creating a "plug-in" for another company's browser to maintain greater control over the data it can collect, one source stated.
