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    Why Is Elon Musk Auctioning Mars Land Deeds—And Are They Legal?

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    How Did a 2025 EU Law Turn Your Smartphone into a ‘E-Waste Time Bomb’?

    How Did a 2025 EU Law Turn Your Smartphone into a ‘E-Waste Time Bomb’?

    Why Is the 2025 ‘Anti‑Social Phone’ Movement Going Viral?

    Why Is the 2025 ‘Anti‑Social Phone’ Movement Going Viral?

    Did an AI Astronaut Just Make the First Autonomous Spacewalk?

    Why Are 2025’s ‘Self-Destructing’ Smartphones Going Mainstream?

    How Will SpaceX’s Satellite Internet Change Global Censorship in 2025?

    How Will SpaceX’s Satellite Internet Change Global Censorship in 2025?

    How Did a 2024 TikTok Trend Crash Tesla’s Self-Driving Beta?

    How Did a 2024 TikTok Trend Crash Tesla’s Self-Driving Beta?

    Why Are 2025’s Smart Glasses Making Smartphones Obsolete?

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    How Did a 2025 EU Law Turn Your Smartphone into a ‘E-Waste Time Bomb’?

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    Why Are 2025’s ‘Carbon-Negative’ Data Centers Heating Swimming Pools?

    Are 2025’s ‘Carbon Capture’ Smartphones Just a Greenwashing Scam?

    Are 2025’s ‘Carbon Capture’ Smartphones Just a Greenwashing Scam?

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    Did NASA Just Let an AI Pilot Its Mars Rover—And Lose Control?

    Did NASA Just Let an AI Pilot Its Mars Rover—And Lose Control?

    Why Is 2025’s Most Popular App an AI That Pretends to Be Human?

    Why Is 2025’s Most Popular App an AI That Pretends to Be Human?

    Why Is Your 2025 Smartphone Secretly Training AI With Your Photos?

    Why Is Your 2025 Smartphone Secretly Training AI With Your Photos?

  • Space Exploration
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    Is NASA’s New ‘Alien DNA’ Experiment Risking a Biohazard on ISS?

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    How Will SpaceX’s Satellite Internet Change Global Censorship in 2025?

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    Did NASA Just Let an AI Pilot Its Mars Rover—And Lose Control?

    Did NASA Just Let an AI Pilot Its Mars Rover—And Lose Control?

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    Are 2025’s ‘Carbon Capture’ Smartphones Just a Greenwashing Scam?

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The Race Heats Up: OpenAI Joins the AI-Powered Search Arena

October 16, 2024
in AI, All Tech, Innovation & Research
The Race Heats Up: OpenAI Joins the AI-Powered Search Arena

The AI-enhanced Search Ecosystem Gains Momentum

July 31, 2024, signifies OpenAI’s entry into the burgeoning AI-powered search domain, heating up an already competitive landscape. Globally, tech giants and emerging players like Microsoft Bing, Google AI Overviews, and startups such as Perplexity are ramping up their AI search initiatives. In China, newcomers like Mi-Tech and publicly listed Kunlun Tech are making their foray into this contested market.

Despite the crowded arena, industry experts maintain that altering the current search paradigm poses significant challenges. A research report from CITIC Securities suggests that traditional search engines remain formidable due to user habits, content indexing range, and backend advertising systems. Although AI search excels in addressing complex queries, drawbacks such as high operational costs and insufficient content indexing persist. OpenAI’s SearchGPT may have a limited impact on the market landscape in the short term but could potentially accelerate the evolution of conventional search engines, leading to a hybrid search product complemented by GPT-like models, thereby influencing cost structures and monetization strategies in the industry.

Rethinking Search: Beyond Traditional Tools

An upper echelon Internet company executive shared with Pengpai Technology that the era of technology-driven search tools has passed. Users might gradually abandon traditional search utilities in favor of content platforms. Vertical-specific search platforms possessing exclusive content could outpace general-purpose search tools in the future. Meeting user needs is paramount over strategy-based search initiatives—platforms like TikTok and Xiaohongshu possess content that remains inaccessible externally.

Stirring the Conventional Search Pot with AI

OpenAI recently unveiled SearchGPT, developed in collaboration with various news publishers and powered by the GPT-4 series models. It summarizes web information, including news articles, encouraging users to inquire further, akin to interacting with ChatGPT. Each answer is followed by a source link, with the sidebar presenting additional outcomes and related information sources. The product was initially available to a select group of 10,000 test users upon launch.

Before OpenAI, Perplexity, supported by industry titans like Jeff Bezos and NVIDIA, launched a similar initiative. Perplexity’s AI chatbot can summarize search results, list references for answers, and assist users in refining queries for optimal responses. CEO of NVIDIA Jen-Hsun Huang, a fan of Perplexity, reportedly uses the product “almost every day.” In April, Perplexity secured financing of $63 million, doubling its valuation to $1 billion within three months.

Industry analysts like Kingsley Crane from Canaccord Genuity propose that AI search tools from OpenAI and Perplexity pressure Google to bolster its home turf offerings.

The Evolution of Search and Monetization Pathways

Google’s AI Overviews were released in response to the rapidly evolving AI space, aiming to provide comprehensive solutions to multifaceted queries. Meanwhile, Microsoft introduced generative search to Bing, crafting summaries from search queries akin to Google’s AI Overviews.

Chinese companies are also exploring this terrain; Mi-Tech has promoted an “ad-free, direct-to-result” AI search, aiming to filter out noise and enhance precision. Kunlun Tech launched Tiangong AI Search to offer a multimodal experience, including text, graphics, and charts, catering to complex research requirements of users.

CITIC Securities’ report reveals that AI search accounted for 24.2% of AI product visits as of March 2024, the second largest use case after large models. The rollouts of Microsoft Bing and Perplexity lead the pack. Although numerous AI search competitors exist, their user base remains significantly smaller than Google’s. SearchGPT’s influence might be minimal in the near term, but industry trends on product forms and business models bear watching.

While Perplexity includes free and premium services, they’re selling AI services to businesses to boost revenue, such as a corporate-grade chatbot at $40 per month. Google, however, retains advertisements, stating that the links in AI Overviews have garnered increased clicks compared to traditional webpage listings.

Google has historically provided ad-funded, free consumer services. A potential shift to a subscription-based model for advanced, AI-driven features could position Google’s search engine behind a paywall for the first time.

Computational costs for generative AI are higher than traditional search, implying that AI-powered search could be pricier. Heather Dawe, Chief Data Scientist at digital transformation consultancy UST, believes Google’s fee structure for AI-powered search will aim to recoup these costs at the very least.

The Inherent Challenge for AI Search Innovators

Despite the innovation in AI search, dethroning established players like Google won’t come easily. Even with the infusion of AI capabilities, platforms like Microsoft’s Bing have not seen a substantial increase in market share. In Q2 of the year, Google’s ad revenue continued to soar, signaling the Himalayan task challengers like Bing face to rival Google’s dominance.

Kunlun Tech and others argue that while AI search may not supplant industry leaders, it could carve out niche markets. The specific areas where search giants may not fully penetrate can be the realm where AI-powered vertical searches thrive through intelligent empowerment.

Unique Content Remains King

The landscape of search engines has been ever-shifting—from web portals like Sohu and Netease to standalone engines like Baidu, and now to new-age gateways such as Douyin and Xiaohongshu. Exclusive content remains king, and the user journey toward content platforms is a testament to the evolving search dynamics.

AI search is not without its challenges. Speed, real-time accuracy, and the elimination of machine hallucinations are hurdles yet to be overcome. But for Mi-Tech, the focus is on practical, day-to-day utility—ensuring users get the most out of their searches for things like gaming guides and resources.

As AI search continues to refine its offerings, adapting to the complex landscape of user needs and market demands, the face of information discovery is continually being reshaped for the future.

Tags: AI SearchMarket DynamicsSearch EnginesTechnology TrendsUser Experience
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