OpenAI is on the verge of unveiling an AI-driven web browser that is positioned to rival Google Chrome by Alphabet, as per insights from three informed individuals who spoke with Reuters. The browser is anticipated to be launched in the upcoming weeks, with a focus on leveraging artificial intelligence to revolutionize the way users navigate the internet. By delving into user data, the browser seeks to disrupt a core element of Google’s success.
If embraced by the 400 million active weekly users of ChatGPT, OpenAI’s browser could exert pressure on a crucial aspect of Google’s advertising revenue stream. Chrome plays a pivotal role in Alphabet’s ad business, contributing to approximately three-quarters of its revenue by providing user data for targeted advertising and directing search traffic to Google’s engine by default.
According to sources, OpenAI’s browser is designed to retain certain user interactions within a ChatGPT-style chat interface, rather than redirecting users to external websites. It forms part of OpenAI’s overarching strategy to integrate its services into consumers’ personal and professional lives.
Led by entrepreneur Sam Altman, OpenAI shook up the technology sector with the introduction of its AI chatbot ChatGPT in late 2022. Following intense competition from rivals like Google and Anthropic, OpenAI is exploring new avenues for growth. In a recent move, OpenAI announced its foray into hardware by acquiring io, an AI devices startup, for $6.5 billion US from Jony Ive, Apple’s former design chief. The development of a web browser would enable OpenAI to seamlessly embed its AI agent products, such as Operator, into the browsing experience, empowering the browser to perform tasks on behalf of users.
Given its access to users’ online activities, the browser is poised to serve as an optimal platform for AI “agents” that can execute actions on behalf of users, such as making reservations or completing forms directly on the websites they visit.
In the realm of web browsers, Google Chrome commands the lion’s share with over three billion users globally, while Apple’s Safari trails at a distant second with a 16% market share. OpenAI recently disclosed having three million paying business users for ChatGPT. Notably, other AI startups like the Browser Company and Brave have introduced AI-powered browsers capable of executing tasks on behalf of users this year. Additionally, Perplexity, a well-funded startup renowned for its search engine, unveiled its AI browser, Comet, last week.
Chrome’s pivotal role in facilitating targeted advertising for Alphabet has prompted the U.S. Department of Justice to call for its divestiture following a court ruling that Google holds an unlawful monopoly in online search.
According to sources, OpenAI’s browser is constructed on the foundation of Chromium, Google’s open-source browser code. Chromium serves as the basis for various browsers, including Google Chrome, Microsoft’s Edge, and Opera.
Last year, OpenAI recruited two former Google vice presidents who played key roles in the original development team of Google Chrome. The company has contemplated creating a browser in the past, as reported by The Information.
In a testimony in April, an OpenAI executive expressed interest in acquiring Chrome if antitrust authorities compelled its sale, although Google has not put Chrome up for sale and intends to challenge the monopoly ruling. OpenAI opted to develop its own browser rather than a mere plug-in for another browser to enhance control over data collection, as per one source.
