OpenAI is set to announce an AI-powered search product on Monday (13 May), which will heat up competition with search engine giant Google, according to Reuters, citing two people familiar with the matter. 

The Micrsoft-backed company’s plans to release a search product were first reported by the Information in February.

OpenAI’s search product will be an extension of its GenAI-powered chatbot ChatGPT. The extension will allow the chatbot to search the web and include citations for information, according to Bloomberg.

If unchanged, the announcement will be made a day before the start of Google‘s I/O conference, at which the tech giant is expected to announce a range of AI-powered products.

As well as Google, OpenAI’s new search product will be in direct competition with AI start-up Perplexity, which is currently valued at around $1bn.

The start-up, which was founded by a former OpenAI researcher, has rose in popularity by providing an AI-powered search engine that fetches images and text in its responses.

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In April, Perplexity announced it had received $62.7m in funding and partnerships with SoftBank and Deutsche Telekom. The AI start-up also launched a paid enterprise model, Perplexity Enterprise Pro.

“Millions already rely on our technology to make their research at work more accurate and efficient, and we’re excited to bring this power to companies to meet the demand for enterprise-scale,” the company said in a blog post.

GlobalData forecasts that the overall AI market will be worth $909bn by 2030, marking a compound annual growth rate (CAGR) of 35% between 2022 and 2030.

With demand for AI chips rising simultaneously from a multitude of industries, the AI chips market alone will be worth £116bn by 2030, according to GlobalData forecasts.

In the GenAI space, revenues are expected to grow from $1.8bn in 2022 to $33bn in 2027, a CAGR of 80%.