OpenAI Launches ChatGPT Atlas Browser — How Big a Threat to Google’s Dominance?

TradingKey - Following AI-powered browsers like Perplexity’s Comet, Brave Browser, and Opera’s Neon, the AI browser race has welcomed a heavyweight entrant: OpenAI. The launch of its first AI-driven browser, ChatGPT Atlas, marks a new front in the AI arms race — and a direct challenge to established players like Google.

On Tuesday, October 21, OpenAI, the developer of ChatGPT, unveiled its first artificial intelligence-powered web browser, designed to deliver a more personalized and intelligent browsing experience.

The new browser looks and feels similar to traditional browsers but is built around OpenAI’s generative chatbot, ChatGPT, and eliminates the traditional address bar — a core feature of search-based navigation.

Users can open a ChatGPT sidebar in any window to ask questions, generate summaries, compare products, book flights, and more — all without switching tabs or conducting separate searches.

AI Browsers: A Crowded But Strategic Battleground

AI browsers are not new — this is already a fiercely competitive space:

• Perplexity launched its paid Comet browser in July and recently made it free for all users
• Google integrated its Gemini AI model into Chrome this month
• Microsoft Edge has long featured AI tools powered by Copilot

For large language model (LLM) developers like OpenAI, entering the browser market is a strategic move to expand revenue streams and deepen user engagement.

For legacy browser makers, it’s a defensive play — adapting to the AI wave before being disrupted.

Market Reaction: Google Shares Drop

Following the announcement of Atlas, Google’s parent company Alphabet (GOOGL) saw its stock fall as much as 5% intraday on Tuesday, before recovering slightly to close down over 2%.

Justin Post, analyst at Bank of America, echoed widespread concern about Google’s search dominance being challenged.

He said that OpenAI has built an impressive global user base — its new product will undoubtedly increase competitive pressure on Google and other big tech firms.

According to Demandsage, ChatGPT had 400 million weekly active users in February 2025. Just eight months later, OpenAI CEO Sam Altman revealed that number has doubled to 800 million.

Will Atlas Disrupt Chrome and Edge?

Pat Moorhead, CEO of Moor Insights & Strategy, said he believes early adopters will be eager to try the new OpenAI browser.

However, he remains skeptical that Atlas will pose a serious threat to Chrome or Microsoft Edge in the near term:

“More mainstream, beginners, and corporate users will just wait for their favorite browsers to offer this capability.”

And many already do:

• Microsoft Edge has deeply integrated AI via Copilot
• Google Chrome now features Gemini AI assistance
• Apple Safari is expected to roll out stronger AI features soon

The Shift Is Real: Search Is Evolving

Despite skepticism about immediate disruption, one trend is undeniable:As large language models improve, more internet users are turning to ChatGPT, Gemini, DeepSeek, and others to ask questions and get advice.

Research firm Datos found that by July 2025, 5.99% of desktop search traffic was already flowing to LLMs — more than double the rate from a year earlier.