Microsoft (MSFT) backed OpenAI and fired another warning that it is ready to take on Alphabet’s Google in the lucrative search business. The company has integrated a new set of features on ChatGPT, designed to enhance how people search for information online. ChatGPT Search is the latest AI-powered tool that lets users search for timely information as they normally do on the web and other data sources.
ChatGPT Search
Through an increasing number of licensing agreements with publishers such as News Corp. and Axel Springer SE, OpenAI has established the foundation for its search offering. Through these collaborations, OpenAI is able to incorporate more current and reliable information into its products.
Paid ChatGPT Plus and Team users will be the first to have access to the new search features, which are based on OpenAI’s 4o model. OpenAI’s enterprise and educational clients will also have access to the latest search tool before it is available to free users.
The unveiling of the new AI-powered search tool is coming as tech companies increasingly integrate generative AI into a wide range of services and offerings. Microsoft Corp is one of the companies that have turned to AI as it looks to strengthen its Bing search and take Google head-on. OpenAI is also emerging as a worthy competitor in offering comparable AI search capabilities to its weekly 250 million users.
The integration of AI into various products, including search, is already paying off, as depicted by tech giants delivering better-than-expected quarterly results. The cloud is one area in which revolutionary technology is having a significant impact because of the exponential increase in revenue by tech giants.
Google’s Gemini and Microsoft’s Copilot are just two examples of the AI products that Microsoft, Amazon (AMZN), and Google are rapidly developing for both consumers and businesses. However, their cloud businesses are the ones well poised to benefit from short-term technology adoption.
AI Investments Paying Off
Revenue for cloud business among Amazon, Microsoft, and Google was up by 22.9% in the third quarter, which is attributed to the company’s investments in AI. Microsoft expects sales of AI products and cloud service to surpass $10 billion in the fourth quarter for the first time.
According to Andy Jassy, the CEO of Amazon, the company’s cloud AI division is expected to generate billions of dollars in revenue annually and is expanding at a triple-digit rate, outpacing the growth of Amazon Web Services as a whole.
Alphabet (GOOGL), Microsoft, and Amazon have revealed that they spent $50.6 billion on property and equipment during the previous quarter, up from $30.5 billion during the same time last year. Much of that funding was allocated to data centres supporting AI.
The strongest indication yet that consumer spending on AI is starting to offset the massive infrastructure investments tech companies are making to support the technology is the acceleration of cloud computing growth.
Anthropic and OpenAI, two privately held AI firms, are competing to create bigger, more advanced AI systems that can handle challenging tasks. Tens of thousands of interconnected chips must be assembled for those efforts, which is a complex undertaking for startups to complete on their own.
