• OpenAI is nearing the launch of an AI-powered web browser to rival Google Chrome.
• The browser aims to transform user interactions with the internet, utilizing AI functionalities.
• It could divert critical user data away from Google, impacting its advertising revenue.
• OpenAI's browser is built on Google's Chromium, allowing for seamless integration of AI agents.
• Industry analysts warn Google may face significant challenges if OpenAI's browser gains traction.

OpenAI is reportedly on the verge of launching an AI-powered web browser designed to challenge Alphabet's dominant Google Chrome. Expected to debut in the coming weeks, the browser aims to fundamentally change web browsing by integrating AI capabilities that cater to user interactions, according to Reuters, India Times, and SCMP.

The upcoming browser could leverage OpenAI's significant ChatGPT user base of 400-500 million active users, which poses a potential threat to Alphabet's advertisement revenue model that relies heavily on data collected through Chrome. Since Chrome accounts for nearly 75% of Alphabet's revenue, a successful adoption of OpenAI's browser could drastically alter its business landscape, according to HuffPost and India Times.

OpenAI's new browser is reported to utilize a native chat interface similar to ChatGPT, keeping essential user interactions contained within the browser rather than redirecting them to external sites. This evolution in browsing experience aligns with OpenAI's strategy to seamlessly integrate AI tools, thereby allowing users to complete tasks directly in-browser, including booking reservations and fulfilling web forms, as highlighted in multiple reports, including Reuters and India Times.

The technical foundation of OpenAI's browser is based on Chromium, the open-source project that underpins Google Chrome, Microsoft Edge, and Opera. The decision to develop a standalone browser instead of a plug-in indicates OpenAI's intention to gain full control over user data, further emphasizing its competitive stance against Google, according to sources cited by HuffPost and SCMP.

OpenAI's ambitious plans coincide with ongoing pressures on Google from antitrust regulators, following a court ruling regarding the company’s monopoly in online search. During the proceedings, OpenAI expressed interest in acquiring Chrome should a forced sale occur, signaling the complexity of the current tech landscape, as reported by Reuters and India Times.