Google and Microsoft face competition from OpenAI with the launch of ChatGPT search.

• On Thursday, OpenAI introduced ChatGPT search, enabling the company to better compete with search engines such as Google, Microsoft's Bing, and Perplexity.
• ChatGPT is the officially rolled-out version of OpenAI's beta-tested prototype search engine, SearchGPT, which was announced in July.
• The feature provides real-time updates on sports scores, stock quotes, news, and weather, utilizing web search technology and collaborations with news and data providers.
• Earlier this month, OpenAI raised $157 billion in a buzzy funding round and secured a $4 billion revolving line of credit.

On Thursday, OpenAI introduced a search feature within ChatGPT, its popular chatbot, to enhance its competition with search engines such as Bing and Perplexity.

The company's ChatGPT search engine provides real-time updates on sports scores, stock quotes, news, and weather, using web search and partnerships with providers, according to the company. The search engine began beta testing in July.

The launch of ChatGPT in November 2022 has raised concerns among Alphabet investors that OpenAI could potentially challenge Google's dominance in search by offering consumers alternative ways to find information online.

Shares of Alphabet were down about 1% following the news.

Microsoft has invested heavily in OpenAI, yet OpenAI's products compete with Microsoft's AI and search tools, such as Copilot and Bing.

In a July post on X, OpenAI CEO Sam Altman expressed the belief that there is potential to significantly improve search capabilities beyond their current state.

Users can search in a more natural and intuitive way with OpenAI's search model, which is a fine-tuned version of GPT-4o and utilizes third-party search providers and content from news industry partners.

OpenAI announced in a Thursday blog post that it utilized feedback from its SearchGPT prototype to enhance the feature and intends to continue enhancing search, particularly in areas such as shopping and travel, while utilizing the reasoning capabilities of the OpenAI o1 series to perform more in-depth research.

According to an OpenAI blog post, ChatGPT will automatically search the web based on what users ask. However, users also have the option to manually click the web search icon within ChatGPT if they prefer.

OpenAI has partnered with various news organizations, including the Associated Press, Reuters, Axel Springer, Condé Nast, Hearst, Dotdash Meredith, the Financial Times, News Corp, Le Monde, The Atlantic, Time, and Vox Media, to incorporate links to sources in its chat responses.

Access to ChatGPT search will be available to ChatGPT Plus, Team, and SearchGPT wait list users starting Thursday, while ChatGPT Enterprise and Edu users will get access in the near future. The product will be rolled out to free version users over time, according to OpenAI.

Earlier this month, OpenAI closed its latest funding round at a valuation of $157 billion, including the $6.6 billion the company raised from a diverse group of investment firms and Big Tech companies. Additionally, OpenAI received a $4 billion revolving line of credit, resulting in a total liquidity of over $10 billion. Despite generating $3.7 billion in revenue this year, the company is projected to incur about $5 billion in losses, as confirmed by CNBC in September with a source close to the matter.

In recent months, OpenAI has faced controversy over its upcoming transition to a for-profit structure and a series of executive departures. Jan Leike, a former safety team leader at the company, wrote on X while resigning that "safety culture and processes have been pushed aside in favor of flashy products" at the company.