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ChatGPT, the AI-powered chatbot created by OpenAI, has apparently pierced the armor of the long-standing king of the internet search industry – Alphabet – as reflected by the latest actions taken by the tech firm.

In late January, a report from the New York Times revealed that the founders of the Mountain View-based search engine giant were discussing how to respond to the growing threat that ChatGPT poses to its wildly successful business model.

Some of the plans included the launch of a ChatGPT-like search engine that generated direct responses to users instead of offering a list of websites that could offer the responses they were looking for.

It appears that such a product from Google could soon hit the streets according to a CNBC report published a few days ago. Sources familiar with the firm’s inner workings told the news outlet that a project called “Atlas” has been activated.

The project is considered a “fire alarm” kind of response to the rising popularity of ChatGPT, which has been ranked as one of the fastest-growing applications in terms of user base according to data from Swiss bank UBS.

Apprentice Bard is the Name of Google’s ChatGPT-Like Product

The name of Google’s competing AI-powered chatbot is Apprentice Bard. According to the CNBC article, it will use a technology known as Language Model for Dialogue Applications – a.k.a. LaMDA.

The product could be used to create an alternative Google website that will depict a conversational format instead of the current keyword-focused model. The AI-powered software will respond to the user’s query with one direct answer to the question and additional responses to other questions that may also be considered relevant to the subject at hand.

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The underlying question if Google does come up with such a product is how it will affect its business model. Currently, this model relies primarily on strategically-located adverts that are listed alongside websites that are considered a match to what the user is looking for.

Alphabet’s advertising revenues account for more than 80% of its top line, meaning that the company’s financial performance could be severely affected if the way its core product work – the Google search engine – is somehow changed.

However, the fact that the company is feeling the need to work on a competing product for ChatGPT indicates that Alphabet is perceiving a threat to its long-standing reign.

With Microsoft as Partner OpenAI Has What it Takes to Compete Against Alphabet

One of the competitive advantages that the search engine giant has compared to OpenAI is that it owns a powerful cloud service that is already being used to process the massive load of complex mathematical and computing transactions required by its search product.

However, Microsoft’s decision to further back OpenAI by investing as much as $10 billion into the company is a much-needed pad on the back that may help the firm founded by Sam Altman to compete with a mammoth like Alphabet (GOOG).

It appears to be “clash of the titans” time in the tech industry as reflected by these latest tectonic shifts and the emergence of a powerful trend such as generative artificial intelligence and its many use cases.

Many companies are already embracing the world of possibilities that this disruptive technology opens up as is the case of Orca Security – a cloud risk management firm based in Israel that has already incorporated a ChatGPT-powered solution that generates a list of remedies to be implemented by network administrators to keep their organizations protected.

In addition, Microsoft (MSFT) is reportedly working on a ChatGPT-powered version of its search engine product – Bing – and also has plans to integrate the technology into its flagship legacy product MS Office.

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