OpenAI is reportedly preparing to launch an AI-powered web browser in the coming weeks, a move seen as a direct challenge to Alphabet's (GOOGL.O) Google Chrome, which currently dominates the browser market. This new browser aims to redefine the internet browsing experience by leveraging advanced AI capabilities. The primary objective of this browser is to enable OpenAI to directly access user data, a key asset that has contributed to Google's success. If OpenAI can attract a significant portion of ChatGPT's weekly active user base of 500 million, it could put considerable pressure on Google's advertising revenue. Chrome is a cornerstone of Alphabet's advertising business, with ad revenue accounting for nearly three-quarters of its total revenue. Chrome provides Alphabet with valuable user information, helping it deliver more effective and profitable advertisements. Additionally, Chrome provides Google with a way to default search traffic to its own search engine. Reports indicate that OpenAI's browser design aims to keep user interactions within a native chat interface similar to ChatGPT, rather than directing them to websites through clicks. This browser is part of OpenAI's broader strategy to widely deploy its services in consumers' personal and professional lives. ### Challenges and Competition OpenAI, led by entrepreneur Sam Altman, faces significant challenges. After the initial success of ChatGPT in 2022, OpenAI faces fierce competition from companies like Google and Anthropic, and is constantly seeking to explore new growth areas. According to data from analytics firm StatCounter, Google Chrome currently has over three billion users, representing more than two-thirds of the global browser market share. Apple's Safari browser comes in second with a market share of just 16%. Last month, OpenAI announced that ChatGPT has 3 million paid enterprise users. ### Expansion into Hardware and AI Integration In May of this year, OpenAI announced plans to enter the hardware space through the acquisition of AI hardware startup io, founded by former Apple design chief Jony Ive, for $6.5 billion. Sources indicate that the web browser will enable OpenAI to directly integrate its AI products into the browsing experience, allowing the browser to perform tasks on behalf of users. The browser's access to users' web activity makes it an ideal platform for AI “agents” to perform actions on their behalf on the websites they use, such as booking and filling out forms. ### Other Competitors Perplexity, an AI-powered search engine company, has launched an AI browser called Comet, which can also perform actions on behalf of users. In addition, other startups such as The Browser Company and Brave have launched AI-enabled browsers that are capable of browsing and summarizing internet content. ### Chromium as Core Source OpenAI's browser will be built on Chromium, Google's own open-source browser code. Chromium is also the core source for Google Chrome and many other competing browsers, including Microsoft Edge and Opera. ### Hiring Experts from Google Last year, OpenAI hired two former Google vice presidents who were part of the original Google Chrome development team. In April, an OpenAI executive stated during a hearing that if antitrust authorities were successful in pushing for the sale of Chrome, the company would be interested in acquiring it. As of now, Google has not offered Chrome for sale. The company has announced that it intends to appeal the ruling that it has a monopoly.