Perplexity Unveils AI Browser Comet, With OpenAI Set to Follow—Is Google’s Search Dominance Under Threat?

TradingKey - Nvidia-backed AI startup Perplexity AI has introduced Comet, a new AI-powered browser, challenging Google's dominance as OpenAI gears up to debut its own offering in the coming weeks.

Earlier this year, Perplexity announced its intention to develop Comet, a browser that integrates AI assistance for an enhanced search experience. Comet's AI assistant can automatically interpret the content users are viewing—whether it’s a social media post, web video, or online document—and provide relevant answers without needing users to input data into a chatbot.

During its initial rollout, Comet will be accessible to subscribers of Perplexity’s $200 monthly service, with plans to gradually extend access by invitation. The goal is to bypass popular browsers like Google Chrome and establish Comet as the default choice for users. Perplexity CEO Aravind Srinivas believes securing this status could result in "endless retention," driving more searches through their platform.

Concurrently, insiders revealed to Reuters that OpenAI will soon introduce its AI browser, designed to keep user interactions within a ChatGPT-like environment, removing the need to visit external sites. OpenAI may also integrate its agent product, "Operator," allowing the browser to execute tasks on behalf of users.

Google: Maintaining Its Edge While Actively Investing in AI Development

Despite the surge of AI-driven competition, displacing Google remains a formidable challenge. StatCounter reports that Google Chrome boasts over 3 billion users, commanding more than two-thirds of the global browser market, with Apple's Safari trailing at 16%.

In May, Google announced significant AI enhancements at its I/O conference. By incorporating "AI Mode" on its search engine, powered by the Gemini 2.5 model, users can conduct searches through conversational interactions rather than traditional keyword methods.

Google asserts that its search engine will not disappear but evolve. By integrating AI seamlessly into its search framework, Google aims to retain its users within its ecosystem amid rising AI competition.

However, despite Google’s advancements in AI, investor sentiment is mixed. So far this year, Alphabet’s Class C (GOOG) and Class A (GOOGL) shares have dropped 6.71% and 6.70%, respectively, lagging behind the S&P 500.

Stock Performance: Alphabet (GOOG, GOOGL) vs. S&P 500, Source: TradingView