Google's parent company, Alphabet Inc. ($GOOGL), experienced a drop in its stock price following reports that OpenAI, along with perplexity_ai, is developing a web search product. The news, which emerged on February 14, 2024, led to a 2% decline in Alphabet's stock in after-hours trading. Further reports on February 15 indicated that the stock price continued to fall, reaching a 3% decrease. OpenAI's initiative, which includes a partnership with Bing, is seen as a direct challenge to Google's dominance in the web search market. This development is particularly noteworthy given that a previous collaboration between Bing, powered by OpenAI, did not significantly impact Google's market share.
Alphabet Drops After Report OpenAI Developing Search Product https://t.co/KgMDmFmKJa
Alphabet Drops After Report OpenAI Is Developing Search Product https://t.co/ENaLlS6r8x
Google Search is about to get another big AI-powered rival. https://t.co/Z6ifU9N0TG
Report: OpenAI working on web search product via @MrDannyGoodwin https://t.co/g8uO8oiu15
$goog off 3% because OpenAI is launching a search product powered by Bing when Bing powered by OpenAI couldn’t even gain 1% share in a year…
$GOOGL - @OpenAI is developing a web search product to challenge Google - Also @perplexity_ai via @theinformation https://t.co/bq1Nn8hXrK
Google $GOOGL is down 2% in after hours on news that OpenAI is developing a web search product https://t.co/HVOyitIUpN