OpenAI is about to shake up the artificial intelligence-powered search market with the imminent announcement of its new search product that will give Google a run for its money, Reuters reports, citing sources familiar with the matter. 

The unveiling of this product, which raises the stakes in its competition with industry giant Google, is anticipated to occur on Monday, although the announcement date remains subject to change and has not been previously disclosed.

Reports from Bloomberg and the Information have shed light on OpenAI’s collaboration with Microsoft in developing this search product, backed by OpenAI’s cutting-edge technology. The aim is clear: to challenge Google’s dominance in the search engine arena, alongside other contenders like Perplexity, a well-funded AI search startup.

Although OpenAI has declined to comment on the matter, industry insiders anticipate the announcement to precede Google’s annual I/O conference, scheduled to commence on Tuesday. At this event, Google is expected to unveil a plethora of AI-related products, setting the stage for a head-to-head battle between the two tech titans.

OpenAI’s search product represents an expansion of its flagship ChatGPT product, integrating advanced AI models to source direct information from the web, complete with citations. ChatGPT, renowned for its human-like responses to text prompts, has long been touted as an alternative for gathering online information. However, it has faced challenges in providing accurate and real-time data from the web. Previous attempts to enhance its capabilities, such as ChatGPT plugins, have since been retired, indicating OpenAI’s relentless pursuit of innovation and improvement.

Meanwhile, startup Perplexity has emerged as a formidable player in the AI search space, boasting a valuation of $1 billion. Founded by a former OpenAI researcher, Perplexity has garnered attention for its AI-native search interface, which prioritizes citations in search results and incorporates images alongside text responses. With 10 million monthly active users, as reported in a January blog post, Perplexity poses a significant threat to established players like OpenAI and Google.

image source: openai logo by Depositphotos

Despite OpenAI’s earlier success in attracting users to ChatGPT, recent fluctuations in website traffic underscore the company’s need to expand its user base. As it gears up to introduce its new search product, OpenAI faces mounting pressure to deliver a seamless and reliable search experience that rivals the capabilities of its competitors.

Google pays Apple billions of dollars every year to be the default search engine in Safari on Macs, iPads, and iPhones, and to prevent the Cupertino giant from going into the web search business. The figure was recently put at $20 billion. However, in the ever-evolving artificial intelligence and search technology, OpenAI’s forthcoming announcement signals a new chapter in the quest for innovation and market dominance.

I asked ChatGPT why OpenAI is going into search, and it said the following:

ChatGPT’s venture into web search represents a strategic move aimed at expanding its capabilities and utility beyond its traditional role as a conversational AI tool. Several reasons drive ChatGPT’s interest in entering the web search space:

Meeting User Needs: Users increasingly rely on AI-powered tools like ChatGPT to access information quickly and conveniently. By integrating web search functionality, ChatGPT aims to provide a seamless experience where users can not only engage in conversation but also retrieve relevant information from the web in real time.

Enhancing User Experience: Incorporating web search capabilities allows ChatGPT to offer a more comprehensive and enriched user experience. Users can now leverage ChatGPT to not only generate human-like responses to text prompts but also access direct information from the web with citations, images, and other multimedia elements.

Addressing Limitations: ChatGPT has faced challenges in providing accurate and real-time information from the web in the past. By venturing into web search, ChatGPT aims to overcome these limitations and deliver more reliable and up-to-date information sourced directly from the web.

Competing with Established Players: With the dominance of search giants like Google, there is a growing demand for alternative search solutions that offer privacy, transparency, and user control. By entering the web search space, ChatGPT seeks to compete with established players by offering a unique proposition that leverages its advanced AI capabilities.

Diversifying Revenue Streams: Expanding into web search opens up new monetization opportunities for ChatGPT. By attracting more users and offering value-added services, ChatGPT can explore various revenue streams such as advertising, premium features, and partnerships with other businesses.

Overall, ChatGPT’s foray into web search aligns with its mission to push the boundaries of AI technology and provide users with innovative solutions for accessing information and engaging in meaningful conversations.

In a startling revelation, the House of Representatives declared yesterday that the contentious Lagos-Calabar coastal highway had never received approval from the National Assembly, igniting a firestorm of debate and prompting urgent calls for an investigation into its procurement process.

The development follows questions from journalists on whether the controversial project received approval from the National Assembly.

During a session in Abuja, the Green Chamber not only disclosed the lack of legislative approval for the project but also resolved to delve deep into the murky waters of its procurement, shedding light on potential irregularities and raising concerns overdue process.

“The guarantees issued to cover the debt financing component of this project do not have the approval of this National Assembly,” asserted Austin Achado, an APC representative from Benue, as he moved the motion titled “Urgent need to investigate the procurement process and award of contract for the Lagos-Calabar Coastal Highway.”

Achado’s motion highlighted a multitude of issues surrounding the project, alleging a blatant disregard for due process and statutory regulations.

He said, “The House is disturbed that the contingent liabilities accruing to the Federal Government of Nigeria on this project violate the Debt Management Office (Establishment) Act of 2023.”

Central to the controversy is the awarding of a colossal contract to Hitech Construction Company Nigeria Limited by the Federal Ministry of Works, without the requisite approval from the National Assembly. 

The project, a gargantuan 700km Lagos to Calabar Coastal Road and Rail Project, comes with a staggering price tag of N4.329 billion per kilometer, using reinforced concrete technology to construct a mammoth carriage width of 59.7 meters, inclusive of 10 lanes, shoulders, and rail, along with auxiliary infrastructure such as service ducts, street lights, drainages, and shore protection.

While touted as a vital artery for national connectivity and economic prosperity, concerns over the procurement process have cast a shadow of doubt over the project’s legitimacy. Achado raised concerns regarding potential violations of the Public Procurement Act 2007 and the Infrastructure Concession and Regulatory Commission Act 2005, citing discrepancies in the procurement strategy employed by the Federal Ministry of Works.

“The procurement strategy adopted by the Federal Ministry of Works for the award of the contract violates the Infrastructure Concession and Regulatory Commission Act 2005,” Achado affirmed, pointing out that the act mandates an open competitive public bid process for all approved infrastructure projects and contracts.

Moreover, questions linger over the financing structure of the project, particularly the lack of transparency regarding the private sector counterpart’s funding sources and competitiveness. This opacity, Achado argued, poses a significant risk of contingent liabilities to the Nigerian government, further compounding the need for a thorough investigation into the procurement process.

In response to these revelations, the House of Representatives tasked its committees on Procurement and Works with the responsibility of investigating the procurement process of the Lagos-Calabar Coastal Highway contract. The urgency of the matter was underscored by the House’s directive for the committees to deliver their findings within four weeks.

The House has also asked the committee to summon the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, SAN; the Minister of Finance, Wale Edun, and his counterpart in the Ministry of Works, David Umahi, to provide further clarification on the project.

However, the Ministry of Works has defended the project, asserting that it adhered to due process. It further noted that members of the House of Representatives had expressed their support for the initiative.

According to the Minister of Works, Dave Umahi, the Federal Executive Council approved and allocated N1.06 trillion to the contractor for the pilot phase of construction. This phase commenced at the Eko Atlantic City and will conclude at the Lekki Deep Seaport. 

Umahi clarified that the contract was awarded to Hitech without competitive bidding due to the company’s proven “track record.” He explained that the approval process involved the Bureau of Public Procurement (BPP) and was in accordance with legal procedures.

Additionally, Umahi said that the contract was based on a counterpart-funding model, rather than a public-private partnership as commonly perceived. Under this arrangement, the investor contributes designs, financing, and construction resources, while the Federal Government provides counterpart funding. The ministry received and processed such a bid, which was subsequently reviewed by the BPP. The resulting price was slightly lower than the ministry’s estimate and even lower than the costs of comparable projects awarded five years ago, such as the Bodo-Bonny project.

While many have commended the ambitious undertaking, some have raised concerns about the contract award process that led to Hitech Construction Company Nigeria Limited becoming the preferred contractor.

Presidential candidates of the Peoples Democratic Party (PDP) and the Labour Party (LP) Atiku Abubakar and Peter Obi, have been vocal in their criticism of the project. Atiku has described it as ‘wasteful and a highway to fraud’, noting that in the 2024 budget, the project was identified as the ‘Lagos-Port Harcourt coastal highway’ and ‘was allocated a budget of N500 million.’

He said, “Although the National Assembly approved N500m for the project this year, the Tinubu administration has released N1.06tn. That is more than 200 times what is in the Appropriation Act. This is what happens when the National Assembly fails in its duties.’’

Obi on his part has asked the federal government to prioritize the rehabilitation of existing roads, which are currently in a deplorable state.

“At the forefront of my concerns is the pressing issue of numerous uncompleted roads scattered across the country, many of which have become hazardous death traps and security risks,” he said. “It is disheartening to witness the plight of innocent Nigerians who traverse these dilapidated roads under perilous conditions, vulnerable to kidnappers and other dangers,” he said.