OpenAI is close to releasing an AI-powered web browser that will challenge Alphabet's (GOOGL.O), opens new tab market-dominating Google Chrome, three people familiar with the matter told Reuters.
The browser is slated to launch in the coming weeks, three of the people said, and aims to use artificial intelligence to fundamentally change how consumers browse the web.
If adopted by the 500 million weekly active users of ChatGPT, OpenAI's browser could put pressure on a key component of rival Google's ad-money spigot.
Chrome is an important pillar of Alphabet's ad business, which makes up nearly three-quarters of its revenue, as Chrome provides user information to help Alphabet target ads more effectively and profitably
OpenAI's browser is designed to keep some user interactions within a ChatGPT-like native chat interface instead of clicking through to websites, two of the sources said.
The browser is part of a broader strategy by OpenAI to weave its services across the personal and work lives of consumers, one of the sources said.
The sources declined to be identified because they are not authorized to speak publicly on the matter.
OpenAI upended the tech industry with the launch of its AI chatbot ChatGPT in late 2022.
After its initial success, OpenAI has faced stiff competition from rivals including Google and startup Anthropic, and is looking for new areas of growth.
In May, OpenAI said it would enter the hardware domain, paying $6.5 billion to buy io, an AI devices startup from Apple's (AAPL.O)
A web browser would allow OpenAI to directly integrate its AI agent products such as Operator into the browsing experience, enabling the browser to carry out tasks on behalf of the user, the people said.
Perplexity, which has a popular AI search engine, launched an AI browser, Comet, on Wednesday, capable of performing actions on a user's behalf.
Two other AI startups, The Browser Company and Brave, have released AI-powered browsers capable of browsing and summarizing the internet.
OpenAI decided to build its own browser, rather than simply a "plug-in" on top of another company's browser, in order to have more control over the data it can collect, one source said.