Deepwater Asset Management Downplays OpenAI’s SearchGPT Threat to Google Search
Deepwater Asset Management’s managing partners, Gene Munster and Doug Clinton, have downplayed concerns that Alphabet Inc.’s GOOG GOOGL Google Search could be outdone by OpenAI’s SearchGPT.
Key Takeaways
- SearchGPT’s limited capabilities: Munster and Clinton both believe that SearchGPT, in its current form, doesn’t offer anything significantly different from Google Search, claiming that it isn’t “10x better” as claimed in the teaser video.
- No immediate threat: While acknowledging the temporary fear among Google investors, both partners assure that Google is not in any real danger if SearchGPT’s capabilities remain limited to what was demonstrated.
- Google’s dominance: Users are unlikely to switch from Google Search to SearchGPT unless it provides a truly unique and superior experience.
OpenAI Unveils SearchGPT: A Potential Disruptor to Google Search Dominance?
On Thursday, Alphabet shares dropped following a report suggesting that OpenAI is developing a search tool called “SearchGPT” with the potential to challenge Google’s dominance in the search engine market.
The following day, OpenAI announced its temporary prototype, SearchGPT, designed to introduce advanced AI-powered search features. While initially limited to a small group of users, the company plans to integrate these features into its popular ChatGPT platform.
Deepwater’s Analysis: A Measured Perspective
In response to OpenAI’s announcement, Deepwater Asset Management, known for its expertise in tech investing, expressed a measured perspective on the potential threat posed by SearchGPT.
Gene Munster, in a tweet, highlighted the brief nature of the SearchGPT teaser video, making it difficult to assess its superiority over existing Google AI tools. He emphasizes that while the launch initially revived concerns among Google investors regarding the threat of AI to search, the limited capabilities showcased in the teaser suggest that Google’s position is not under imminent risk.
Doug Clinton, Deepwater’s other managing partner, echoes Munster’s sentiments. While acknowledging the slight dip in Google’s stock after the SearchGPT announcement, he also emphasizes that the tool poses no substantial threat to Google’s existing AI capabilities. Clinton specifically points out that the showcased features don’t seem to offer a significant advantage over what Google already provides.
The Importance of User Experience and Differentiation
Both partners agree that in order for SearchGPT to successfully compete with Google Search, it must deliver a truly unique user experience that surpasses what currently exists. Until then, they believe that users are unlikely to abandon the familiarity and convenience of Google Search for a new, unproven alternative.
The Future of Search: A Battleground for AI Innovation
While Deepwater downplays SearchGPT’s immediate threat to Google, it is clear that the launch marks a significant development in the evolving landscape of search technology. OpenAI’s move underscores the growing competition in the AI space, with major players like Google and Microsoft vying for supremacy in providing innovative search experiences.
The implications of SearchGPT’s development extend beyond Google Search. It highlights the increasing reliance on AI for information retrieval and the potential disruption that this technology could bring to various industries reliant on search.
Google’s Response and the Future of AI-powered Search
Google has yet to publicly comment on SearchGPT. However, the company has been actively developing its own AI search capabilities, as evidenced by its recent launch of Bard, a conversational AI chatbot designed to provide more comprehensive and interactive search experiences.
The battle for dominance in the search market is likely to intensify as both Google and OpenAI continue to invest in AI research and development. The future of search may be defined by advancements in language processing, information retrieval, and the ability to provide accurate, relevant, and compelling results.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Content relating to artificial intelligence is for informational purposes only. Benzinga does not provide investment advice.
