OpenAI claims ChatGPT handles 20% of Google search volume
OpenAI states that ChatGPT now processes 20% as many search requests as Google, a milestone that underscores growing competition in the search space. Alphabet shares faced pressure as investors weighed the impact of this shift on search revenue.
Adam Fry, OpenAI’s consumer product lead, stated that ChatGPT is now processing 20% as many search requests as Google. This represents a significant milestone given Google’s market share of over 90% for more than a decade. OpenAI classifies any query resulting in a web search as a search request. Sundar Pichai, Google’s CEO, noted on an earnings call that strong growth in AI mode queries slowed search revenue growth due to lower monetization.
The development has contributed to a setback for Alphabet’s stock, which Jan Beckers attributes to weakness in its search business rather than its AI capital expenditure. Beckers argues that increasing user queries are shifting from classic search to AI, potentially allowing competitors to capture market share. Despite this risk, Alphabet’s cloud business has grown over 100%, and its own chips are now a major competitor to Nvidia. In contrast, Amazon’s high capital expenditure is viewed positively, with a payback period for investments estimated at 2.5 to 3 years.
Additionally, GPT 6.2 Astra and GPT 6.2 Sol have appeared on the Google Cloud backend, indicating an imminent release. The primary market question is whether GPT 6.2 can beat Opus 5.5. OpenAI’s ad rollout has been well-received, with Fry suggesting the company could expand its advertising business further. The broader AI investment cycle is expected to continue as states and companies view data centers as strategic assets for security and independence.