Investing.com -- Alphabet Inc. shares slipped about 1% Thursday as OpenAI's ChatGPT introduced a new search capability, increasing competition with Google by allowing users to find information directly through the chatbot.
According to a report by The Wall Street Journal, beginning today for paying subscribers, the newly launched feature will enable ChatGPT to search the web and summarize content from trusted sources, presenting a streamlined alternative to conventional search engines like Google.
Powered by Microsoft (NASDAQ:MSFT)'s Bing's search engine, the feature also taps into content from media partners like News Corp (NASDAQ:NWSA)'s Wall Street Journal and the Associated Press.
Currently available for paid ChatGPT Plus and Team users, OpenAI's search mode is slated for wider release.
Varun Shetty, OpenAI's head of media partnerships, stated that the search functionality "improves relevancy and decreases hallucinations," offering more accurate and reliable answers to user queries.
Since its debut, ChatGPT has quickly gained popularity, leading some investors to speculate that it could begin to replace traditional search engines.
In response, Google has ramped up its AI-powered features, including AI summaries and cited sources in search results, which now appear for over a billion Google users globally.
Nevertheless, Alphabet (NASDAQ:GOOGL) remains the dominant player, as over a billion people still rely on Google for online information.
ChatGPT's enhanced functionality arrives ahead of key events, such as the upcoming U.S. presidential election, where search engines play a critical role in helping users find information.
According to the WSJ, OpenAI has committed to directing election-related queries to sources like Reuters and the Associated Press to maintain information quality.