ChatGPT Surpasses Google in AI Race; Companies Eye Chrome Buys

Google's dominance in the search market is being challenged from multiple fronts. The first major challenge comes from the rise of AI chatbots like ChatGPT and Perplexity, which have redefined the way users seek information. Since its launch in November 2022, OpenAI's ChatGPT has seen a significant shift in user habits. Gartner predicts that by 2026, chatbots will capture 25% of traditional search engine traffic. ChatGPT's ability to provide direct and contextually relevant responses has made it popular, reducing the need for users to navigate through multiple links. As of March 2025, ChatGPT boasts 1.6 billion daily active users (DAUs), compared to Google's Gemini, which has 35 million DAUs. Google, however, is not standing idly by. The company introduced Gemini in 2024, but its user adoption has been much slower than ChatGPT. Gemini's late global release for iOS in November 2024, nearly 18 months after ChatGPT, and its initial name changes (from Bard to Gemini) may have contributed to this gap. Despite these challenges, Google continues to leverage its robust ecosystem to stay competitive. The search giant collaborates with Android device manufacturers like Samsung and pre-installs Gemini on new devices, similar to how it dominated the search market through default installations. Google’s Chromebrowser and Android operating system, which collectively serve over 20 billion monthly active users (MAUs) and 1.5 billion DAUs, create a strong network effect that is hard to disrupt. In addition to technological competition, Google faces legal scrutiny. The U.S. Department of Justice (DOJ) has filed an antitrust lawsuit against Google, alleging that the company's exclusive agreements with device manufacturers and mobile operators maintain its dominant position. These agreements limit competitors' opportunities to become default options on devices. The DOJ's efforts aim to level the playing field and foster more innovation and fair competition. Looking at the broader picture, the competition between Google and OpenAI extends beyond just individual apps. While ChatGPT's rapid user growth is impressive, Google's ecosystem remains a formidable force. The search giant's vast user base, combined with its deep technological expertise, gives it significant advantages. However, the DOJ's proposed sale of Chrome to third parties could be a game-changer. Chrome, which holds about two-thirds of the browser market share, is a critical component of Google's online distribution channel. Any change in Chrome's ownership could significantly impact Google's ability to direct traffic to its search engine and other services. OpenAI, meanwhile, has also faced internal and external challenges. In 2024, the company partnered with Apple to launch Apple Intelligence and rolled out a voice-capable version of GPT-4, along with text-to-video technology called Sora. However, key figures like Chief Scientist Ilya Sutskever and CTO Mira Murati left the company, and legal hurdles arose, including a copyright infringement lawsuit from Alden Global Capital and a ban request from Elon Musk to halt the transition to a profit model. To address these challenges, OpenAI launched an AI agent tool "Operator" in January 2025 to automate web tasks and introduced personalized features in ChatGPT. The company also enhanced image generation and voice interaction capabilities in March 2025, but this led to copyright disputes. In April 2025, OpenAI announced plans to release an open language model similar to GPT-2, allowing free downloads and use without API restrictions. Security measures were also adjusted to mitigate risks posed by high-risk systems from competitors. Despite these obstacles, OpenAI expects to generate $12.7 billion in revenue in 2025, primarily from its paid software. However, achieving positive cash flow is projected for 2029, highlighting the high costs associated with continuous technological development. OpenAI's efforts to collaborate with government entities and build large data centers underscore its commitment to expanding its reach and maintaining innovation. The potential buyers of Chrome, such as DuckDuckGo, see significant value in acquiring the browser. Control over Chrome would allow these companies to swiftly promote their own search engines and other products to a vast user base, potentially altering the dynamics of the market. CEO Gabriel Weinberg estimated Chrome's value at around $50 billion, indicating the immense commercial potential of this asset. Industry experts believe that the current competition between Google and OpenAI is a positive development. Increased rivalry can spur technological advancements, improve service quality, and reduce market dominance, benefiting the entire tech industry. While Google's ecosystem and extensive research and development capabilities remain strong, regulatory pressures and innovative competition from OpenAI and others may force the company to operate more transparently and fairly. This could lead to a more balanced and dynamic market in the long term. Google, headquartered in California, USA, has been a leader in internet search for over two decades. However, the emergence of advanced AI chatbots and ongoing antitrust litigation present significant challenges. OpenAI, founded as a non-profit by Elon Musk and later transitioning to a for-profit entity, has rapidly gained traction with ChatGPT, showcasing advanced AI capabilities and flexibility. The legal and ethical issues OpenAI faces highlight the complexities of rapid AI development. Meanwhile, the high valuation and strategic importance of Chrome reflect Google's dominant position and the intense interest from competitors to break this stronghold. The future of the search market remains uncertain, but the competitive landscape is evolving in ways that may drive significant advances and reforms in the tech industry.