On Tuesday, Gene Munster weighed in on OpenAI's launch of the ChatGPT Atlas browser, calling it promising but cautioning that Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google Chrome's dominance remains intact.
OpenAI Launches ChatGPT Atlas in Browser Wars
OpenAI unveiled ChatGPT Atlas, an AI-powered web browser built around its popular chatbot, directly challenging Google Chrome.
The browser allows users to summarize content, compare products and analyze data, while its paid "agent mode" can interact with websites to complete tasks automatically, from researching trips to shopping online.
Gene Munster's Take: Exciting, But Not Revolutionary
Munster, managing partner at Deepwater Asset Management, commented on the launch, saying, "Good news for $GOOG. While the Atlas browser is a step forward, especially around agents, it's not 10x better than Chrome."
He went on to add that "Google can (and will) copy these features quickly." Following which, it will be difficult for OpenAI's Atlast to gain a share of the market.
"I'm a fan of what OpenAI is building and believe Google will be fine," he stated.
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Prior to Atlas's launch, Munster questioned why Google pays Apple Inc. (NASDAQ:AAPL) $20 billion annually to be Safari's default search engine. "Because the browser is the gateway to search."
He said the real test for OpenAI will be turning its 800 million weekly ChatGPT users into active browser users. "If OpenAI can parlay its 800M weekly users into browser users, then Google will have its work cut out."
Google’s Share Price Fell And Then Gained Some
Following the launch, Alphabet shares fell 2.37% for Class A and 2.21% for Class C. Class A shares were up 1.95% while Class C shares were up 1.93% in after-hours trading, according to Benzinga Pro.
Atlas is the newest player in the competitive AI browser space, alongside Perplexity's Comet, Brave Browser and Opera's Neon.
Despite the new challenge, Chrome maintains 71.77% of the global browser market, according to Statcounter. Google has also integrated its Gemini AI into the browser to offer AI summaries and chatbot-like responses.
Benzinga's Edge Stock Rankings indicate that GOOGL demonstrates a robust trend over short, medium and long-term timeframes, with a complete performance breakdown available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
