logo
New Data Shows that ChatGPT Is Impacting Google's (GOOGL) Search Dominance

New Data Shows that ChatGPT Is Impacting Google's (GOOGL) Search Dominance

New data shows that OpenAI's ChatGPT may slowly be taking users away from Google Search. Indeed, at Coatue Management's recent East Meets West conference, the investment firm shared stats from SimilarWeb (SMWB) showing that two years after people start using ChatGPT, they do about 8% fewer Google searches each month. It is worth noting that Alphabet (GOOGL), the parent company of Google, has already admitted that ChatGPT is a real threat.
Confident Investing Starts Here:
Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
In fact, in an antitrust hearing this April, Sissie Hsiao—the former head of Google's Gemini chatbot—said that ChatGPT has already replaced some search queries, especially for homework and math help. While those types of searches don't bring in much advertising money, Hsiao's testimony suggested that the growing popularity of AI tools could lead to larger, long-term threats.
As a result, Google's ad chief, Vidhya Srinivasan, said that losing commercial searches—the kind tied to shopping and ads—is not just a risk, but something that is 'inevitable.' The latest data suggests that this shift is already starting to happen. And that is a big deal because most of Google's revenue comes from ads on its search platform. Meanwhile, OpenAI, which is backed by Microsoft (MSFT), continues to improve ChatGPT and make it even easier to use, which could pull even more users away from Google over time.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 29 Buys and nine Holds assigned in the past three months. Furthermore, the average GOOGL price target of $199.11 per share implies 14.88% upside potential from current levels.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Actor Ike Barinholtz Will Play Elon Musk In Sam Altman OpenAI Movie
Actor Ike Barinholtz Will Play Elon Musk In Sam Altman OpenAI Movie

Forbes

time21 minutes ago

  • Forbes

Actor Ike Barinholtz Will Play Elon Musk In Sam Altman OpenAI Movie

Actor Ike Barinholtz is in talks to portray the world's richest person, Elon Musk, in an upcoming comedy-drama movie that will reportedly center on the brief ousting of billionaire Sam Altman from the helm of OpenAI in 2023. Elon Musk will reportedly be portrayed in the upcoming film "Artificial." (Photo by Chip ...) Getty Images The upcoming film, 'Artificial,' is still in development at Amazon MGM Studios and is expected to shoot later this year with a planned release for 2026, multiple outlets reported. Actor Ike Barinholtz, who recently scored an Emmy nomination for his role in 'The Studio,' is in talks to play Elon Musk in the film, multiple outlets reported Wednesday. Andrew Garfield is attached to play another billionaire, OpenAI co-founder and CEO Sam Altman, with actor Yura Borisov also set to play OpenAI co-founder Ilya Sutskever. Though few details of the plot are known, the film is described as a comedy-drama about the few days between Altman's firing and re-hiring as OpenAI's CEO in November 2023. Luca Guadagnino, known for his films including 'Call Me By Your Name' and 'Challengers,' is directing the project. Forbes has reached out to Amazon MGM Studios for comment. Matthew Belloni, entertainment reporter at Puck, claimed he obtained a copy of the 'Artificial' script, stating Musk and Altman will 'probably hate their portrayals' and that Musk is referred to as a 'dictator' at one point in the script. Belloni noted the script is a draft and could change before the movie shoots, but said Musk appears in a few scenes of 'villainy and comic relief.' Other billionaires included in the draft, according to Belloni, include former OpenAI vice president of research and current Anthropic CEO Dario Amodei, as well as Microsoft CEO Satya Nadella. Why Was Sam Altman Fired From Openai? Altman, who co-founded OpenAI in 2015 and was installed as CEO in 2019, was fired from his post on Nov. 17, 2023 by the company's board, which said it no longer had 'confidence in his ability to continue leading OpenAI.' In its statement, the board accused Altman of not being candid with it, though the details surrounding his firing, which was considered a shock, were unclear. The following year, board member Helen Toner, who helped oust Altman, said Altman made the board's job 'really difficult' by 'withholding information, misrepresenting things that were happening at the company' and sometimes 'outright lying to the board,' alleging he did not inform the board about ChatGPT's 2022 release. She also claimed two executives said they had endured 'psychological abuse' and a 'toxic atmosphere' crafted by Altman. Hundreds of employees threatened to quit OpenAI after Altman's firing, and on Nov. 22, the board announced Altman would be reinstated. Sutskever, who is portrayed in 'Artificial,' was reportedly a leader of the effort to remove Altman, though he later expressed regret for the ouster and signed the open letter threatening to quit unless Altman was reinstated. Musk has been parodied multiple times on 'Saturday Night Live,' which he lambasted in posts on X. After Dana Carvey tackled Musk in a post-election episode in November, Musk tweeted 'SNL' has been 'dying slowly for years, as they become increasingly out of touch with reality.' In a separate post, he said 'Dana Carvey just sounds like Dana Carvey.' Musk was parodied months later by Mike Myers, prompting the billionaire to post: 'SNL hasn't been funny in a long time. They are their own parody.' Musk hosted 'SNL' in 2021, and three years later, cast member Chloe Fineman said he was 'rude' on set and made her cry by calling a sketch she had written 'not funny.' Forbes Valuation Forbes estimates Musk's net worth at $415 billion as of Wednesday, making him the wealthiest person in the world. He owns about 12% of Tesla and 42% of SpaceX, both of which he co-founded. Altman is worth $1.8 billion, according to Forbes estimates, largely from his investments in Stripe, Reddit and other companies. Further Reading Luca Guadagnino to Direct True-Life OpenAI Movie 'Artificial' for Amazon MGM (Hollywood Reporter)

From tech podcasts to policy: Trump's new AI plan leans heavily on Silicon Valley industry ideas
From tech podcasts to policy: Trump's new AI plan leans heavily on Silicon Valley industry ideas

The Hill

time22 minutes ago

  • The Hill

From tech podcasts to policy: Trump's new AI plan leans heavily on Silicon Valley industry ideas

President Donald Trump has unveiled a sweeping new plan for America's 'global dominance' in artificial intelligence, proposing to cut back environmental regulations to speed up the construction of AI supercomputers while promoting the sale of U.S.-made AI technologies at home and abroad. The 'AI Action Plan' introduced Wednesday embraces many of the ideas voiced by tech industry lobbyists and the Silicon Valley investors who backed Trump's election campaign last year. The White House on Wednesday revealed the 'AI Action Plan' Trump ordered after returning to the White House in January. Trump gave his tech advisers six months to come up with new AI policies after revoking President Joe Biden's signature AI guardrails on his first day in office. The unveiling is co-hosted by the bipartisan Hill and Valley Forum and the 'All-In' podcast, a business and technology show hosted by four tech investors and entrepreneurs, which includes Trump's AI czar, David Sacks. The plan includes some familiar tech lobby pitches. That includes accelerating the sale of AI technology abroad and making it easier to construct the energy-hungry data center buildings that are needed to form and run AI products. It also includes some of the AI culture war preoccupations of the circle of venture capitalists who endorsed Trump last year. Trump's AI plan: global dominance, cutting regulations The plan prioritizes AI innovation and adoption, urging the removal of any 'red tape' that could be slowing down adoption across industries and government. But it also seeks to guide the industry's growth to address a longtime rallying point for the tech industry's loudest Trump backers: countering the liberal bias they see in AI chatbots such as ChatGPT or Google's Gemini. Trump's plan seeks to block the government from contracting with tech companies unless they 'ensure that their systems are objective and free from top-down ideological bias.' A Biden-era framework for evaluating the riskiest AI applications should also be stripped of any references to 'misinformation, Diversity, Equity, and Inclusion, and climate change,' the plan said. The plan also says the nation's leading AI models should protect free speech and be 'founded on American values,' though it doesn't define which values those should include. Sacks, a former PayPal executive and now Trump's top AI adviser, has been criticizing 'woke AI' for more than a year, fueled by Google's February 2024 rollout of an AI image generator that, when asked to show an American Founding Father, created pictures of Black, Asian and Native American men. Google quickly fixed its tool, but the 'Black George Washington' moment remained a parable for the problem of AI's perceived political bias, taken up by X owner Elon Musk, venture capitalist Marc Andreessen, Vice President JD Vance and Republican lawmakers. Streamlining AI data center permits to speed up supercomputer construction The plan aims to speed up permitting and loosen environmental regulation to accelerate construction on new data centers and factories and the power sources to fuel them. It condemns 'radical climate dogma' and recommends lifting a number of environmental restrictions, including clean air and water laws. Trump has previously paired AI's need for huge amounts of electricity with his own push to tap into U.S. energy sources, including gas, coal and nuclear. Many tech giants are already well on their way toward building new data centers in the U.S. and around the world. OpenAI announced this week that it has switched on the first phase of a massive data center complex in Abilene, Texas, part of an Oracle-backed project known as Stargate that Trump promoted earlier this year. Amazon, Microsoft, Meta and xAI also have major projects underway. The tech industry has pushed for easier permitting rules to get its computing facilities connected to power, but the AI building boom has also contributed to spiking demand for fossil fuel production, which will contribute to global warming. United Nations Secretary-General Antonio Guterres on Tuesday called on the world's major tech firms to power data centers completely with renewables by 2030. 'A typical AI data center eats up as much electricity as 100,000 homes,' Guterres said. 'By 2030, data centers could consume as much electricity as all of Japan does today.' The plan includes a strategy to disincentivize states from aggressively regulating AI technology. It recommends that federal agencies 'consider a state's AI regulatory climate when making funding decisions and limit funding if the state's AI regulatory regimes may hinder the effectiveness of that funding or award.' Trump's Republican administration had supported a different proposal in Congress to block states from passing any AI laws for 10 years, but the Senate defeated it earlier this month. Who benefits from Trump's AI action plan? There are sharp debates on how to regulate AI, even among the influential venture capitalists who have been debating it on their favorite medium: the podcast. While some Trump backers, particularly Andreessen, have advocated an 'accelerationist' approach that aims to speed up AI advancement with minimal regulation, Sacks has described himself as taking a middle road of techno-realism. 'Technology is going to happen. Trying to stop it is like ordering the tides to stop. If we don't do it, somebody else will,' Sacks said on the 'All-In' podcast. On Tuesday, more than 100 groups, including labor unions, parent groups, environmental justice organizations and privacy advocates, signed a resolution opposing Trump's embrace of industry-driven AI policy and calling for a 'People's AI Action Plan' that would 'deliver first and foremost for the American people.' Amba Kak, co-executive director of the AI Now Institute, which helped lead the effort, said the coalition expects Trump's plan to come 'straight from Big Tech's mouth.' 'Every time we say, 'What about our jobs, our air, water, our children?' they're going to say, 'But what about China?'' she said in a call with reporters Tuesday. She said Americans should reject the White House's argument that the industry is overregulated and fight to preserve 'baseline protections for the public' as AI technology advances.

Five Things Causing Electricity Prices to Spike
Five Things Causing Electricity Prices to Spike

Newsweek

time23 minutes ago

  • Newsweek

Five Things Causing Electricity Prices to Spike

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Artificial intelligence (AI) and cryptocurrency are among the technological advances driving up energy demand across the United States, which could result in higher energy prices for consumers. Why It Matters These innovative technologies are rapidly reshaping all aspects of global society, but have fueled concerns about energy usage. As technology like AI becomes more accessible and widely used, many critics are concerned about both its environmental impact and the potential to drive up energy demand and prices for Americans. Energy consumption in the U.S. is on the rise, according to a June U.S. Energy Information Administration report. Consumption is expected to hit 4,193 billion kilowatt-hours in 2025, up from 4,097 billion kilowatt-hours in 2024, according to the report. What To Know An aerial view of a large Google Data Center being built in Cheshunt, England, on May 31, 2025. An aerial view of a large Google Data Center being built in Cheshunt, England, on May 31, 2025. Richard Newstead/iStock via Getty Images Artificial Intelligence Millions of Americans now utilize AI in their day-to-day lives, whether for work, to quickly search for information online, or generative purposes. However, studies show that the widespread use of AI may come at a cost. A May 2024 study by the Electric Power Research Institute (EPRI) found that AI data centers could account for 9 percent of U.S. electricity generation by 2030. This is largely because AI searches use approximately 10 times the energy of traditional searches through engines like Google. AI-generated photographs and multimedia use even more energy. These data centers consume a significant amount of power to process and store massive amounts of information, as well as to cool equipment to prevent it from overheating. PJM Interconnection, a transmission organization covering parts of the East Coast and Midwest, on Tuesday announced that electricity demand is likely to continue to "rapidly" grow, driven largely by data center expansion, electrification and economic growth. A Monitoring Analysis report from June pointed to the growing number of data centers as the "primary reason for recent and expected capacity market conditions." "It is misleading to assert that the capacity market results are simply just a reflection of supply and demand. The current conditions are not the result of organic load growth. The current conditions in the capacity market are almost entirely the result of large load additions from data centers, both actual historical and forecast," the report reads. Cryptocurrency Cryptocurrency is also driving up energy demand. According to Energy Star, the global annual energy consumption across the market is 68 terawatt hours. Cryptocurrencies like Bitcoin require computers to solve complex mathematical problems to verify transactions, which consumes a high amount of energy, contributing to increased energy consumption. A 2021 University of Chicago study found that cryptomining could cost Americans up to $1 billion each year. "In Upstate New York, where a quarter of US crypto mining takes place, the researchers find that electricity rates have gone up in response to rising demand. Their study demonstrates that because of bitcoin mining's power usage, households paid an additional $165 million a year in energy costs, while businesses paid an extra $79 million," the report reads. AI and crypto are not the only reasons consumers are paying more for electricity; however, new technologies and societal developments could also be contributing to higher energy bills. Work From Home Many Americans may see their energy prices increase because they are working from home, which requires more energy for lighting and computers. A Power Wizard study released earlier in July found that remote work increases electricity prices by about 6.8 percent, or $109 more per year. That does depend on location, though. California saw the highest percent increase at 11 percent, while Louisiana ranked the lowest at only a 4.38 percent increase in energy bills for those working from home. Global Politics Electricity prices are also tied to the state of global affairs, as the cost of fossil fuels can fluctuate during times of conflict. The Russia-Ukraine war, which began in 2022, has seen many countries restrict the imports of Russian oil as a form of sanction against Moscow. The conflict also exacerbated inflation, an economic challenge already faced by much of the globe. A World Economic Forum study published in February 2023 found that the conflict nearly doubled energy costs worldwide. Conflict in the Middle East, where many countries produce oil, has also at times caused electricity prices to fluctuate. There have been concerns that simmering tensions between the U.S. and Iran could drive energy prices upward throughout the summer. One Big Beautiful Bill Act The Republican-backed One Big Beautiful Bill Act, signed into law by President Donald Trump, could also cause electricity prices to increase, according to some studies. The bill amends clean energy grant programs enacted by the former President Joe Biden administration, which critics say could lead to increased electricity prices due to higher demand for fossil fuels, even as demand is already rising due to the expansion of data centers. Energy Innovation found that by 2030, Nevada residents could see their prices increase by $300, the most of any state. What People Are Saying White House assistant press secretary Taylor Rogers previously told Newsweek: "Since Day One, President Trump has taken decisive steps to unleash American energy and drive oil and gas production to reduce the cost of energy. The One Big Beautiful Bill will turbocharge oil production by streamlining operations for maximum efficiency and expanding domestic production capacity, which will deliver further relief to American families and businesses." The International Energy Agency (IEA) said in an April report: "In the United States, power consumption by data centres is on course to account for almost half the growth in electricity demand between now and 2030. Driven by AI use, the US economy is set to consume more electricity in 2030 for processing data than for manufacturing all energy-intensive goods combined, including aluminium, steel, cement and chemicals. "In advanced economies more broadly, data centres are projected to drive more than 20% of the growth in electricity demand between now and 2030, putting the power sector in those economies back on a growth footing after years of stagnating or declining demand in many of them." What Happens Next The increase in electricity costs from AI centers remains a key issue that millions of Americans may face over the coming years, and one that lawmakers are already seeking to address. A bill introduced in New Jersey, for instance, would require AI data centers to be derived from renewable energy sources to avoid adding strain to the power grid.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store