The tech world is abuzz with the rumoured development of a new search engine by OpenAI. This potential game-changer, confirmed by The Atlantic’s CEO Nicholas Thompson, could significantly disrupt the current search paradigm dominated by Google.

The implications of such a development are far-reaching, impacting both large and small publishers, as well as the broader landscape of internet navigation and information retrieval.

OpenAI’s Ambitious Plans

OpenAI’s CEO Sam Altman has made it clear that the company intends to revolutionise the way people navigate the internet. The proposed search product aims to integrate web search capabilities with advanced large language models (LLMs). This approach is already evident in ChatGPT’s “browse mode,” which has shown significant improvements with the advent of GPT-4.

Despite its current limitations for certain query types, ChatGPT’s popularity is undeniable, with a record 2.9 billion visits in June, marking a 96% year-over-year increase.

Strategic Partnerships and Market Dynamics

The Atlantic’s partnership with OpenAI is just one example of the strategic alliances forming in anticipation of this new search paradigm. While large publishers like The Atlantic might benefit from such collaborations, smaller publishers could struggle to gain visibility on OpenAI’s platform. This potential imbalance raises questions about the future of digital content distribution and the role of AI in shaping it.

In a detailed interview with The Verge, Thompson’s insights suggest a cautious optimism about AI search eventually becoming a reliable traffic source. He acknowledges the current shortcomings of AI in search applications but believes that with enough engineering effort, these issues will be resolved.

However, he is realistic about the timeline, suggesting that a significant shift away from Google’s dominance is unlikely within the next three years.

The Role of Microsoft and Bing

Interestingly, reports indicate that OpenAI’s search engine will be partly powered by Microsoft’s Bing. This partnership suggests that OpenAI might not be developing a standalone search indexing technology but rather leveraging Bing’s existing infrastructure. This collaboration raises the question: is OpenAI genuinely challenging Google, or is Microsoft using OpenAI as a proxy in its ongoing battle with the search giant?

Bing’s integration with GPT-4 and the use of an orchestration layer, which Microsoft has already implemented in Bing Chat, underscores the complexity of creating a competitive search engine. Microsoft’s experience and mature search technology provide a solid foundation, but it remains to be seen how OpenAI will differentiate its product and whether it can attract a substantial user base away from Google.

Apple Partnership: A Strategic Advantage

The recent partnership between OpenAI and Apple could further play a role in the development of OpenAI’s search engine. By integrating ChatGPT into iOS, iPadOS, and macOS, OpenAI can leverage Apple’s vast user base and ecosystem.

The integration allows users to access ChatGPT’s capabilities directly within Apple’s operating systems, enhancing the user experience with advanced AI features. Siri’s ability to tap into ChatGPT’s intelligence and incorporate ChatGPT into Apple’s systemwide Writing Tools are significant steps towards creating a more seamless and integrated search experience. This collaboration not only expands OpenAI’s reach but also provides valuable data and user insights that could inform the development of its search engine.

Business Ramifications and Ecosystem Challenges

OpenAI faces a monumental task in challenging Google’s search dominance, primarily due to Google’s vast user base and deep integration into daily life through its ecosystem of services and devices. OpenAI’s ChatGPT, despite its rapid growth, still pales compared to Google’s billions of users and daily search queries.

To compete, OpenAI will need to offer a compelling product that not only matches Google’s utility but also provides unique value propositions.

One significant hurdle is OpenAI’s lack of expertise in information retrieval (IR), a field crucial for effective search functionality. Unlike Google, which has decades of experience and a plethora of research in IR, OpenAI’s focus has been on developing LLMs and other AI technologies. Without a robust IR foundation, OpenAI’s search engine might struggle to provide the accuracy and relevance that users expect from a search product.

Media Partnerships and AI Integration

The partnership between The Atlantic and OpenAI highlights another critical aspect of this development: the role of media companies in shaping AI-driven search.

By allowing OpenAI to use its content for training and inclusion in the search product, The Atlantic aims to ensure that high-quality journalism remains accessible and visible in the AI-driven web landscape. This strategy reflects a broader trend where media companies seek to balance the benefits of AI integration with the need to protect their content and revenue streams.

However, this approach is not without risks. Media companies must navigate the delicate balance between monetising their content through partnerships with AI firms and safeguarding their intellectual property. The potential for AI to commodify creative work is a significant concern, and the long-term implications of such deals are still uncertain.

The evolving landscape of AI search and its integration with traditional media will continue to be a pivotal area of development, with many eyes watching to see how OpenAI and its partners navigate these challenges and opportunities.