OpenAI, in collaboration with Microsoft, is poised to revolutionise the search engine landscape with the launch of a new AI-powered search tool.

Scheduled for debut on Monday (Tuesday NZ), this innovative product aims to challenge Google's dominance in the search market, leveraging OpenAI's cutting-edge ChatGPT technology.

Set against the backdrop of Google's impending annual I/O conference, where the tech titan is expected to unveil new AI-driven features, OpenAI's strategic announcement adds a compelling dimension to the competitive dynamics within the industry.

The forthcoming search engine represents a significant advancement, harnessing the capabilities of ChatGPT to deliver web-sourced information augmented with citations.

By addressing previous limitations in accuracy and real-time updates, this initiative seeks to redefine the search experience for users.

According to sources, the new search tool extends ChatGPT's functionality, enabling it to retrieve directly cited information from the internet.

This enhancement marks a pivotal milestone in OpenAI's quest to enhance user engagement and accessibility, building upon the platform's previous achievements in driving record-breaking user interactions.

In a landscape marked by rapid technological innovation, OpenAI's foray into the realm of AI-powered search reflects the broader trend of industry players seeking to push the boundaries of what is possible.

The integration of generative AI into search engines, exemplified by Google's recent initiatives, underscores the evolving nature of user expectations and the relentless pursuit of enhanced functionality and utility.

However, OpenAI's entry into the AI search domain is not without competition.

Startup Perplexity, spearheaded by a former OpenAI researcher, has emerged as a formidable contender, boasting a valuation of $1 billion.

Perplexity's user-friendly AI search interface, complemented by citations and multimedia integration, has garnered significant traction, with over 10 million monthly active users.

The emergence of Perplexity underscores the intensifying rivalry in the AI space, with both established players and newcomers vying for market share and mindshare.

As the industry continues to evolve towards more sophisticated and interactive AI solutions, the stage is set for a dynamic and fiercely competitive landscape.