open AI has announced a new AI search engine called search GPT obviously it's powered by Ai and it's setting up to be a serious competitor to the likes of Google and Bing let's unpack what this means and why it's such a GameChanger so open AI is rolling out search GPT as a prototype to a select group of users and Publishers it's designed to combine the capabilities of open ai ai models with real-time web searches what's different here is that search GPT doesn't just spit out a list of links it actually organizes the information and presents

it in a more userfriendly way let me give you an example from open ai's blog post say you search for music festivals in Boon North Carolina in August 2024 search GPT won't just throw a bunch of links at you it'll give you a summary of the festivals it found complete with little descriptions and links to the sources they say their new search engine aims to make finding information online faster and more efficient everything is presented in a clear conversational format which makes the whole experience a lot more intuitive open AI is planning to eventually integrate

these search features directly into chat GPT which could be a major upgrade for users who already rely on chat GPT for various tasks now open aai is also addressing some of the major concerns that have come up with AI in search we've seen other AI search tools like Google's Ai overviews and perplexity face backlash from Publishers these tools have been accused of taking content without proper attribution tion which can hurt traffic and AD revenue for the original sites but open AI is taking a different approach by partnering with Publishers and giving them control over how

their content is used they've even got big names like the Wall Street Journal and the Atlantic on board which speaks to the level of trust they're building one of the standout features of search GPT is how it handles attributions when you search for something you get answers with clear inline citations and links to the original sources this this not only helps users know where the information is coming from but also directs traffic back to the Publishers this move is directed at fostering a more symbiotic relationship between AI tools and content creators in the early stages

only about 10,000 test users will have access to search GPT open AI is using direct content feeds and working with thirdparty Partners to build the search results this approach is all about getting feedback and fine-tuning the system before a wider roll out the idea is to make web search is not just faster but also more accurate and reliable now open ai's entry into the search Market comes at a time when Google is facing significant challenges the US Department of Justice has an Anti-Trust lawsuit against Google accusing it of monopolizing the internet search industry and this

opens the door for competitors like search GPT to make a significant impact alphabet shares fell 3.6% in after hours trading following open ai's announcement of search GPT Google which currently dominates the search Market with about 90% of search engine traffic is facing a direct Challenge from open ai's latest Innovation this development highlights the growing competition in the AI search space particularly between Microsoft backed open aai and Google Now open ai's new search GPT is a perfect example of why you actually need to know how to use AI to stay relevant at work if you've been

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of linkedin's top starter UPS in 2022 and 2023 so don't miss out register now for free as one of the first 1,000 participants click the link in the description to sign up see you there all right now back to the unfolding story of AI powered search engines open ai's unveiling of search GPT has been seen as a significant threat to Google's search dominance since the rise of chat GPT in 2022 in response Google has integrated AI features into its own search engine to fend off competition from Rivals like chat GPT and perplexity which is backed

by Jeff Bezos despite these efforts speculation about alphabet's potential vulnerability to AI competition had not materialized as evidenced by alphabet's recent double- digigit advertising Revenue growth for its second quarter search GPT however represents a more direct and formidable challenge to Google than previous Innovations open AI described it as a prototype designed to combine the capabilities of their AI models with real-time web information providing Fast And Timely answers with clear and relevant sources another really interesting aspect of search GPT is the visual answers feature while full details are still a bit unclear it seems like this

will involve AI generated videos and images to enhance the search experience this could be incredibly useful for visual Learners or for topics that lend themselves well to graphical representations open AI has been steadily moving towards tighter realtime web integration for chat GPT GP PT 3.5 was an early step in that direction with more current information then came the browse with Bing feature a basic implementation but a clear signal of their intent Now search GPT takes a major leap by making AI a central part of how we search the web it's evident that open AI doesn't

just want to compete with existing search engines they want to fundamentally redefine how we interact with online information by making searches more conversational and seamlessly blending up-to-date web data they aim to create a smoother more efficient user experience this prototype phase is critical for working out any kinks and ensuring the system functions well for a wide audience before a broader roll out they are obviously taking the time to gather feedback make adjustments and deliver a polished product it's clear now that search GPT isn't just about finding information it represents a reshaping of the entire search

experience to be more engaging visually compelling and tightly interwoven with the ever evolving web so what's next for search GPT open AI plans to keep iterating and improving the experience especially in areas like local information and e-commerce they'll be seeking feedback from both users and Publishers to make the service even better if you're interested in trying it out you can sign up for the wait list on their website this search GPT release could really shake up the online search industry with Google facing major antitrust lawsuits and new AI powered search tools like search GPT emerging

we're seeing big changes in how people will find and access information on the internet this is an area that's heating up so it's it's worth paying attention as things are about to get competitive and disruptive all right now turning to a more critical matter open AI is struggling with major financial problems according to internal projections the company is expected to lose a staggering $5 billion this year that's right 5 billion dollar to put that number into perspective that's roughly the GDP of a small country so what's going on well it turns out that developing and

maintaining AI models like chat GPT is extremely expensive the company needs to pay for massive amounts of computing power to process all the data and generate responses and we're not talking about just any computers we're talking about supercomputers that can handle enormous amounts of information but that's not all open ey has also been hiring a lot of new staff to help develop and improve its AI models in fact the company has doubled its Workforce in the past year alone and all those new employees come with a hefty price tag now you might be wondering how

open Ali plans to make up for all these losses well the company does generate some revenue from chat GPT but it's not nearly enough to cover its expenses in fact estimates suggest that chat GPT only brings in around $100 million to $200 million per year that's a tiny fraction of what open AI needs to break even so who's footing the bill well it turns out that Microsoft is providing subsidies to help cover its losses but even with Microsoft's support open aai is still struggling to find a way to make its business model work the problem

is that their primary focus is on Research not generating Revenue the company wants to push the boundaries of what's possible with AI but that's a costly and timeconsuming process and while chat GPT has been a huge success it's still not clear how open AI plans to monetize it in the long term this raises some serious questions about the future of open aai can the company find a way to make its business model work or will it continue to rely on Microsoft subsidies and what happens if Microsoft decides to pull the plug the truth is open

AI struggles are a reminder that developing AI is incredibly challenging and expensive it's not just a matter of throwing a bunch of money at the problem and hoping for the best it takes time effort and resources to create AI models that are truly useful and effective but despite these challenges open AI is still pushing the boundaries of what's possible with AI and that's something to be excited about with its talented team and focus on Research open AI has the potential to make some truly groundbreaking discoveries all right if you like this video please give it

a thumbs up and subscribe for more AI updates share your thoughts in the comments below thanks for watching and I'll catch you in the next one