By Christine Ji

OpenAI’s new ChatGPT Atlas browser is the latest in a series of new products that are challenging Alphabet’s ecosystem

OpenAI launched its AI-native web browser, ChatGPT Atlas, on Tuesday, causing shares of Google to drop.

Could Alphabet Inc.’s Google Chrome be in trouble?

Shares of Alphabet Inc. (GOOGL) (GOOG) fell as much as 4.8%, before paring some of those losses, after OpenAI unveiled an artificial-intelligence browser during an event Tuesday – leading investors to wonder if the new product could take market share from Chrome.

OpenAI’s web browser, called ChatGPT Atlas, includes key capabilities such as in-browser assistance and browser memory, allowing it to remember context from previous searches to offer smarter suggestions. The browser’s “agent mode” allows Atlas to take actions on behalf of users, such as shopping, making reservations or editing a document. The browser is available to macOS users worldwide, while agent mode is available in preview to ChatGPT Plus, Pro and Business users.

Shares of Google clawed back some of their earlier losses by market close, ending the day down 2.1%.

Read on: Google’s rivalry with OpenAI just got more heated as a new threat to search emerges

OpenAI has amassed an impressive global user base, and new products could certainly “raise competitive pressure” on Google and other Big Tech companies, Bank of America analyst Justin Post wrote in a note published Monday, prior to the unveiling of Atlas.

The competition among AI browsers is fierce. In September, Google incorporated its Gemini model into its Chrome browser. Users can access the Gemini icon in the top-right corner of the browser and ask the AI to explain and compare information across multiple webpages.

And in July, Perplexity rolled out its AI browser Comet, which is designed to serve as a personal assistant that can carry out tasks for users. Initially only available to Perplexity Max subscribers, Comet was made free to all users earlier this month.

The recent antitrust ruling against Google also creates a more open playing field for AI web browsers. The ruling prohibits Google from entering or maintaining exclusive contracts for the distribution of its products, including Gemini. It also requires Google to make some of its search assets available to qualified competitors.

OpenAI’s web browser is the latest in a series of new products that compete directly with those of Big Tech players such as Google and Meta Platforms Inc. (META) Its short-form AI video app Sora, which has surpassed 1 million downloads in the App Store, could challenge YouTube and Reels for consumers’ screen time. Last month, investors questioned the future of Google Search after OpenAI announced ChatGPT Pulse, a feature that proactively delivers daily recommendations.

Read: Google is looking to lock in an AI advantage with this move

-Christine Ji

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10-21-25 1710ET

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