OpenAI, rather than the ongoing federal investigations, could be the biggest threat to Google's dominance in the tech industry as the race for AI-powered services intensifies.
In a Reuters report on Thursday, several industry experts and analysts have come forward to declare OpenAI as the newest competitor of Google as the two clash with their search engines.
Experts claim that other companies' AI developments would impact Google's business faster and more clearly than litigations that could take years before fruition.
Shifting customer allegiances, at least when it comes to Google's major partners, would be evident even before final rulings were established as the company tried to skirt around regulation violations under further scrutiny, a pressure many startups like OpenAI suffer less.
Similar sentiments can be reportedly seen across Wall Street as analysts projected the end of preferential treatment towards Google Search in favor of companies building their own search engines as Apple and Microsoft already did, both powered by OpenAI's developments.
More Search Engines on the Rise
Following OpenAI's lead, it can be expected that more companies will soon attempt to breach the search engine market as Google struggles to maintain its monopoly on its customers.
So far, several startups have already hinted at plans to produce similar services, although none has yet to showcase as much progress as OpenAI did.
Other tech giants like Amazon and Meta, on the other hand, have been busy building their respective AI models, and many of their features strike similarities to search engines.
OpenAI, AI Startups Gain Regulators' Scrutiny Amid Booming Industry
While Google and other tech giants receive the brunt of regulators' scrutiny, it does not mean that OpenAI and other prominent AI startups are entirely safe from the issues surrounding the booming industry.
The Department of Justice and the Federal Trade Commission earlier launched a joint investigation on several AI-related deals recently for potential anti-trust violations.
Among the main recipients of the investigation were OpenAI, Microsoft, and NVIDIA, all of which have secured several deals to provide their services to other digital platforms and businesses.
A former OpenAI employee-turned-whistleblower also filed a complaint with the Securities and Exchange Commission last month, urging federal agencies to probe the company amid concerns about the "irresponsible deployment of AI."
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