Can AI search save OpenAI? SearchGPT internal testing encounters setbacks, raising doubts

OpenAI has begun internal testing of the SearchGPT search engine, but is simultaneously facing technical challenges and financial pressures.

OpenAI recently announced the launch of their AI-powered search engine SearchGPT, which is currently in beta testing with 10,000 users. This move is seen as a strategic challenge to Google's dominance in the search engine market.

SearchGPT, powered by GPT-4, combines AI technology with real-time web information, allowing users to retrieve information in a conversational manner similar to ChatGPT. Unlike ChatGPT, which relies on older data, SearchGPT provides up-to-date information with clear and relevant source links.

However, during the official demonstration, SearchGPT encountered issues similar to Google's Bard, making factual errors. This highlights the ongoing challenge of "AI hallucinations" in the industry, where AI generates fluent but factually incorrect responses.

The launch of SearchGPT demonstrates OpenAI's ambition to expand into the search engine market. However, this vision comes with significant financial requirements. Recent reports suggest that OpenAI may be facing financial difficulties and could potentially exhaust its cash reserves by the end of the year.

OpenAI's current financial situation is concerning, with estimated annual operating costs of $8.5 billion, far exceeding its revenue. The company spends approximately $700,000 daily to maintain ChatGPT's operations, and this figure is likely to increase as models become more complex.

While SearchGPT has the potential to become a significant player in the search engine market, opinions are divided on its revolutionary impact. Some experts believe it will be a strong competitor to Google and other AI-driven search platforms, while others argue that it lacks the revolutionary experience to convince users to abandon traditional search engines.

As OpenAI faces the challenge of balancing cost control and revenue expansion, the success of SearchGPT could be crucial in determining the company's financial future.