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OpenAI Enters Google-Dominated Search Market with SearchGPT 

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
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OpenAI Enters Google-Dominated Search Market with SearchGPT 

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)

OpenAI is venturing into a territory long dominated by Google with the selective launch of SearchGPT, an artificial intelligence-powered search engine with real-time access to information from the internet.

The move, announced on Thursday, also places the AI giant in competition with its largest backer Microsoft's Bing search and emerging services such as Perplexity — a search-focused AI chatbot firm backed by Amazon founder Jeff Bezos and semiconductor giant Nvidia.

Shares of Google's parent company Alphabet ended 3% lower on Thursday after OpenAI's announcement.

OpenAI said it has opened sign-ups for the new tool, which is currently in the prototype stage and is being tested with a small group of users and publishers. The company plans to integrate the best features from the search tool into ChatGPT in the future.

"AI-powered search tools from OpenAI and Perplexity re-affirm search as a content engagement model but pressure Google to be better at its own game," Canaccord Genuity analyst Kingsley Crane said.

Google dominates the search engine market with a 91.1% share as of June, according to web analytics firm Statcounter.

SearchGPT will provide summarized search results with source links in response to user queries, OpenAI said in a blog post. Users will also be able to ask follow-up questions and receive contextual responses.

The company will give publishers access to tools for managing how their content appears in SearchGPT results. News Corp and The Atlantic are publishing partners for SearchGPT.

SearchGPT signals a closer collaboration between publishers and OpenAI, following content licensing agreements with major organizations like Associated Press, News Corp and Axel Springer.

"Newer AI-powered search providers could face challenges of their own, with Perplexity already facing pending legal action from publishers like Wired and Forbes, and Condé Nast," said Crane.

Major search engines have been trying to integrate AI into search since ChatGPT first launched in November 2022. Microsoft, through its early investment, adopted OpenAI technology for its Bing search engine, while Google rolled out AI-powered summaries for the wider public at its developer conference in May.

Google did not respond to a Reuters query on the potential impact of SearchGPT on its business.

Reuters had earlier reported on OpenAI's plans around AI search in May.

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Technology

Pentagon Reaches Agreements with Top AI Companies, but Not Anthropic

FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo
FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo
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Pentagon Reaches Agreements with Top AI Companies, but Not Anthropic

FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo
FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo

The Pentagon said on Friday it had reached agreements with seven AI companies to deploy their advanced capabilities on the Defense Department's classified networks as it seeks to broaden the range of AI providers working across the military.

The statement notably excludes Anthropic, which has been in dispute with the Pentagon over guardrails for the use of its artificial intelligence tools by the military, Reuters reported.

The Pentagon labeled the AI startup, which is widely used across the Department of Defense, a supply-chain risk earlier this year, barring its use by the Pentagon and its contractors.

SpaceX, OpenAI, Google, NVIDIA, Reflection, Microsoft and Amazon Web Services, several of which already work with the Pentagon, will be integrated into its Impact Levels 6 and 7 network environments giving more of the military access to their products, the Pentagon said in a statement.

By expanding the AI services offered to troops, who use it for planning, logistics, targeting and a bevy of other reasons to streamline huge operations and perform more quickly, the Pentagon said in its statement it will avoid "vendor lock", a likely nod to its overdependence on Anthropic. Pentagon staffers, former officials and IT contractors who work closely with the US military have told Reuters they were reluctant to give upAnthropic’s AI tools, which they view as superior to alternatives, despite orders to remove them over the next six months.

AI has become increasingly important for the US military. The Pentagon's main AI platform GenAI.mil has been used by over 1.3 million Defense Department personnel, the agency noted in its release, after five months of operation.

Google, which is already used within the Pentagon, has signed a deal enabling the Department of Defense to use its artificial intelligence models for classified work, a source told Reuters earlier this week.

ANTHROPIC STILL A 'RISK'

Defense Department Chief Technology Officer Emil Michael on Friday told CNBC that Anthropic remained a supply-chain risk, but that Mythos, the company’s artificial intelligence model with advanced cyber capabilities that created a stir among US officials and corporate America over its ability to supercharge hackers, was a “separate national security moment.”

While numerous companies and public and private entities have gained access to a Mythos preview product to help secure their IT infrastructure against future cyberattacks, it is not clear if the Pentagon is part of that program. US President Donald Trump said last week that Anthropic was "shaping up" in the eyes of his administration, opening the door for the AI company to reverse its blacklisting at the Pentagon.

Still, the falling out reinforced the need to diversify the supply of AI tools for the military, opening new opportunities for small defense industry artificial intelligence startups.

Technology

Apple Shares Rise on Strong Quarterly Sales in Run-up to CEO Change

The Apple logo is seen at an Apple store in the Barton Creek Square mall on April 30, 2026 in Austin, Texas. (Getty Images via AFP)
The Apple logo is seen at an Apple store in the Barton Creek Square mall on April 30, 2026 in Austin, Texas. (Getty Images via AFP)
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Apple Shares Rise on Strong Quarterly Sales in Run-up to CEO Change

The Apple logo is seen at an Apple store in the Barton Creek Square mall on April 30, 2026 in Austin, Texas. (Getty Images via AFP)
The Apple logo is seen at an Apple store in the Barton Creek Square mall on April 30, 2026 in Austin, Texas. (Getty Images via AFP)

Apple shares jumped 3% in premarket trading ‌on Friday after the iPhone maker posted its strongest quarterly sales growth in more than four years, a show of momentum as it prepares to hand over the reins to a new CEO.

Its latest iPhone 17 Pro series and the newly launched low-cost MacBook Neo laptop are both drawing buyers at a time of low overall demand in the consumer electronics industry due to price hikes forced by the memory chip shortage.

Even though Apple's margins for the January-March quarter and its fiscal third-quarter forecast were above Wall Street estimates, outgoing CEO Tim Cook warned that ‌higher memory costs would ‌increasingly weigh on the business from June.

Limited ‌supply ⁠of the advanced ⁠processors for iPhone have already hampered Apple's ability to capitalize on strong demand. The chips are made by Taiwan's TSMC, the leading producer of AI processors.

Analysts say Apple's clout with long-time suppliers could position it better than rivals in securing memory chips but it might have to raise prices later this year.

"The key question will be deciding the perfect balance strategically ⁠between increasing prices and maintaining profitability or focusing on ‌gaining share by not increasing prices," said ‌Nabila Popal, a senior research director at IDC.

"I think Apple will increase ‌prices of the Pro and ProMax in upcoming fall launch, however ‌even if they don't, with the super high-end iPhone fold coming up - which we expect to be well over $2,200– will help balance some of the increased costs."

RESULTS BODE WELL FOR NEW CEO

The results, including a forecast of ‌14% to 17% sales growth for the current quarter that was above estimates, bode well for the company ⁠before hardware ⁠chief John Ternus takes over as CEO in September. Cook will stay on as executive chairman.

The change comes as Apple looks to close the gap with rivals Microsoft and Alphabet, which have moved faster to roll out AI features and infrastructure.

Investors are expected to get more details about its AI plans at it annual software developer conference in June.

Some analysts said Apple's decision to no longer aim to bring its net cash - cash minus debt - to a net neutral position may help it manage its financial position better in the AI era.

The move gives it greater balance-sheet flexibility, allowing it to absorb higher costs, support share repurchases and deploy capital more strategically, TD Cowen analysts said.

Technology

Meta Chief Doubles Down on AI Spending

FILE PHOTO: Meta Platforms CEO Mark Zuckerberg arrives outside court to take the stand at trial in a key test case accusing Meta and Google's YouTube of harming kids' mental health through addictive platforms, in Los Angeles, California, US, February 18, 2026. REUTERS/Mike Blake
FILE PHOTO: Meta Platforms CEO Mark Zuckerberg arrives outside court to take the stand at trial in a key test case accusing Meta and Google's YouTube of harming kids' mental health through addictive platforms, in Los Angeles, California, US, February 18, 2026. REUTERS/Mike Blake
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Meta Chief Doubles Down on AI Spending

FILE PHOTO: Meta Platforms CEO Mark Zuckerberg arrives outside court to take the stand at trial in a key test case accusing Meta and Google's YouTube of harming kids' mental health through addictive platforms, in Los Angeles, California, US, February 18, 2026. REUTERS/Mike Blake
FILE PHOTO: Meta Platforms CEO Mark Zuckerberg arrives outside court to take the stand at trial in a key test case accusing Meta and Google's YouTube of harming kids' mental health through addictive platforms, in Los Angeles, California, US, February 18, 2026. REUTERS/Mike Blake

Meta chief Mark Zuckerberg on Wednesday defended massive spending on artificial intelligence that dragged down shares despite strong earnings boosted by the technology.

The social networking colossus raised its capital expenditures for this year to a range of $125 billion to $145 billion without laying out exactly how that investment would translate into profit.

"The way to think about the investment is that we're making a bet (on) the individual things that people care about, and that people are going to be more important in the future," Meta chief Mark Zuckerberg said during an earnings call, as analysts pressed him about the company's heavy spending on AI.

He gave the example of a hot trend in "agentic" AI in which digital assistants handle computer tasks independently at the behest of people.

"There are a lot of agents out there that people are building for different things, and there aren't that many that I would want to give to my mother," Zuckerberg said.

"I think getting to that quality bar is something that I care about more than hitting a specific week for launching (a new product) or something like that."

Zuckerberg spotlighted a new Muse Spark AI model built by Meta's nascent "Superintelligence Lab", saying its technology will be put to work in Meta's offerings such as smartglasses and its advertising system.

"We are trying novel things," AFP quoted Zuckerberg as saying.

The AI investment from the company that owns Instagram and Facebook is not directly tied to a revenue stream as with Amazon, Microsoft and Google, which sell their AI-powered cloud services to clients worldwide.

Meta sent tremors on Wall Street by announcing in its earnings release that expenses at the tech giant notched up to $33.4 billion as it chases "superintelligence" through major infrastructure buys, and went on a hiring spree for top AI talent.

Shares dropped more than 6 percent even though the company topped forecasts with a profit of $26.8 billion on revenue of $56.3 billion in the quarter.

- Headwinds and scrutiny -

Adding to investor unease about Meta, chief financial officer Susan Li told analysts Meta continues to monitor legal and regulatory "headwinds" in the US and Europe, including social media addiction lawsuits.

"We continue to see scrutiny on youth related issues and have additional trials scheduled for this year in the US, which may ultimately result in a material loss," Li warned.

A Los Angeles jury in March found Meta and YouTube liable for harming a young woman because of an addictive design of their social media platforms, ordering the companies to pay millions of dollars in damages.

The verdict hands plaintiffs in more than a thousand similar pending cases significant leverage -- and signals to the tech industry that juries are prepared to hold social media companies accountable for the mental health toll of their design choices.