OpenAI is set to launch an AI-powered web browser aimed at directly competing with Alphabet’s market-leading Google Chrome. Expected to debut in the coming weeks, this new browser intends to revolutionize the way users explore the web by harnessing artificial intelligence. This move would also provide OpenAI with direct access to user data, a crucial factor in Google’s success.
The upcoming browser from OpenAI could have a significant effect on Google’s advertising revenue, particularly if it gains traction among ChatGPT’s 500 million weekly active users. Google Chrome is a foundational element of Alphabet’s advertising business, which generates nearly three-quarters of its revenue. Chrome facilitates the collection of user data for more effective ad targeting and directs search traffic to Google’s search engine. In contrast, OpenAI’s browser aims to maintain user interactions within a ChatGPT-like chat interface, potentially reducing clicks to external websites and limiting the data flow to Google.
The new browser aligns with OpenAI’s strategy to integrate AI services deeply into consumers’ personal and professional lives. This initiative, though unconfirmed by OpenAI, has been reported by anonymous sources and comes as the company – led by Sam Altman – seeks new growth avenues amidst intense competition from Google and Anthropic, following its initial success with ChatGPT.
With the recent $6.5 billion acquisition of AI hardware startup io, the web browser would enable OpenAI to directly embed AI agents that can perform tasks for users. OpenAI plans to leverage access to user web activity through its new browser to create an optimal environment for AI agents capable of performing direct actions, such as booking reservations or completing forms on behalf of users.
This approach positions OpenAI in direct competition with Google Chrome, which holds over two-thirds of the browser market with 3 billion users. Despite facing competition from other AI browsers like Perplexity’s Comet, The Browser Company, and Brave, OpenAI is moving ahead with its plans. Google’s extensive use of Chrome data for targeted advertising has attracted antitrust scrutiny and calls for divestiture.
Although OpenAI’s browser is built on Google’s open-source Chromium code and the company has even hired former Chrome developers while expressing interest in acquiring Chrome if forced, OpenAI ultimately decided to develop its own browser to gain greater control over data collection.