OpenAI officially jumped into the browser battle this week with the launch of ChatGPT Atlas on October 21, putting pressure on Google to roll out its Gemini-powered Chrome to a wider audience. The announcement of this AI-driven browser sent shockwaves through the market, wiping $150 billion off Alphabet’s value in a single day, one of the most dramatic market reactions to a tech launch this year.
The reveal started with a cryptic six-second clip on X showcasing browser tabs, followed by a livestream featuring CEO Sam Altman. Initially, Alphabet's shares dropped by up to 4.8% to $246.15 shortly after OpenAI's announcement, but they partially rebounded to close with a 2.4% decrease at $250.46.
Sam Altman described the browser as "a rare once-a-decade opportunity to redefine the concept of a browser." Google on the other hand aims to release Gemini 3.0 by the end of 2025, while Perplexity is eager to observe the performance of its Comet browser following the integration of ChatGPT.
The stakes go beyond browser share, Google’s search ad revenue is threatened as AI delivers direct answers, bypassing ads. With 800 million weekly ChatGPT users, OpenAI has a huge ready audience.
Google is fighting back, integrating Gemini AI into Chrome and dodging a court-ordered breakup last month. As Q3 earnings near on October 29, investors will watch closely for signs AI is impacting Google’s search dominance.
Built on Chromium, Atlas is now available on macOS, with mobile and Windows versions launching soon. It integrates ChatGPT directly into every webpage, eliminating the need to switch tabs or copy-paste queries.
CEO Sam Altman describes Atlas as a revolutionary reimagining of web browsing, not just another Chrome competitor. Atlas’s signature "agent mode" allows AI to take control of your cursor and keyboard to complete tasks like booking flights or editing documents. This feature is initially exclusive to Plus and Pro users, while free users can access the core browsing experience.