OpenAI launches AI-powered search engine SearchGPT causing drop in Alphabet's shares

Microsoft-backed company has launched search tool to small group of users and publishers for feedback

OpenAI is a research company that says its mission is to ensure that AI is of benefit to humanity. AP

Generative artificial intelligence company OpenAI on Thursday unveiled a prototype of its new search engine, SearchGPT, which led to a drop in the shares of Alphabet, which owns Google's Search.

Alphabet’s shares dropped almost 3 per cent to close at $169.16 on Thursday. It further dipped 0.61 per cent to trade at $168.12 in after-hours trading.

SearchGPT is designed to provide users with “fast and timely answers with clear and relevant sources”, the Microsoft-backed company said.

“We think there is room to make search much better than it is today … we will learn from the prototype, make it better, and then integrate the tech into ChatGPT to make it real-time and maximally helpful,” OpenAI’s chief executive Sam Altman wrote in a post on X.

SearchGPT will directly respond to users’ questions with latest information from the web, while giving them clear links to relevant sources.

Responses will have “clear, in-line, named attribution and links so users know where information is coming from and can quickly engage with even more results in a sidebar with source links”, the company said.

Users will also be able to ask follow-up questions, as they would in a conversation with people.

OpenAI said its new tool aims to help users find relevant answers on the web in fewer attempts.

“We believe that by enhancing the conversational capabilities of our models with real-time information from the web, finding what you are looking for can be faster and easier,” it added.

Sam Altman, chief executive of OpenAI. EPA

San Francisco-based OpenAI is a research company that says its mission is to ensure that AI is of benefit to humanity.

Its ChatGPT is a program that comes up with human-like responses to prompts in seconds, based on information publicly available on the internet.

The program has become hugely popular since its launch in December 2022, while also raising concerns about what it is being used for and its accuracy.

The SearchGPT announcement comes after OpenAI's launch of a new model, GPT-4o mini, last week.

Who can access SearchGPT?

OpenAI said it is launching SearchGPT to a small group of users and publishers to get feedback. Those interested in trying the prototype can sign up for the waiting list.

“Currently in testing with a limited group of users, OpenAI intends to eventually integrate SearchGPT into its ChatGPT chatbot," the company said.

"We will keep improving the experience in areas like local information and commerce."