OpenAI and Perplexity enter browser wars to take on Chrome

Google Chrome’s dominance in the browser market is facing new threats as OpenAI and Nvidia-backed Perplexity unveil AI-powered browsers aimed at reshaping how users interact with the web.

Perplexity AI, this week, launched Comet, a new web browser with built-in AI search capabilities, the company said.

Separately, OpenAI is preparing to release its own AI-powered browser, in a move that could further challenge Chrome’s dominance, Reuters reported.

In a blog post, Perplexity said that Comet offers a unified browsing experience where users can ask questions, complete tasks, and explore information through a single interface.

“Comet allows you to ask questions anywhere they occur to you, whether you want to understand a complex concept, find hidden connections, create new possibilities, or solve problems that have been puzzling you,” the company added.

OpenAI’s upcoming browser is reportedly designed to handle some user interactions within a ChatGPT-style chat interface, reducing the need to visit external websites. The approach is said to be part of a broader strategy to embed OpenAI’s services more deeply into both personal and professional aspects of users’ lives.

Change in browsing approach

AI-driven chat tools like ChatGPT and Perplexity are gaining traction as alternative channels for information discovery, but web browsers continue to serve as the primary access point for more than 90% of users on smart devices.

“Though AI usage is on the rise, the workflow is still distributed and scattered for users,” said Faisal Kawoosa, founder and lead analyst at Techarc. “By default, all web-related tasks happen through browsers. In many cases, collaboration tools and cloud applications are even accessed through browsers. Now, if a user has to use AI during the workflow, it’s a detour, taking the data or information to an AI app, processing it there, and then bringing the results back into the workflow.”

With these companies entering the AI browser market, AI tools could become more integrated into everyday browsing, potentially improving workflow efficiency.

“The industry is witnessing the advent of the ‘Browser 2.0’ era, exemplified by the deep integration of Copilot within the Chromium-based Microsoft Edge,” said Neil Shah, partner & co-founder at Counterpoint Research. “Until AI agents become the primary interface for information access, developing an AI-native browser is a crucial strategy for user acquisition. This approach complements the growth of standalone applications and deeper OS-level integrations, such as the partnerships between OpenAI and Apple, or Perplexity and Motorola.”

An AI-native browser offers a key advantage by bypassing the data restrictions of standalone applications. For firms like OpenAI and Perplexity, it opens the door to detailed telemetry on user browsing behavior, creating new opportunities for monetization through advertising, data deals, and other channels.

Strategic advantage, with challenges

Controlling a web browser offers a direct channel to user behavior and data, an advantage that has long set Google apart. Chrome held 68% of the global browser market in June, according to StatCounter, far outpacing competitors such as Safari, Microsoft Edge, and Firefox.

“Browsers can collect detailed user data, including browsing history and activity,” Kawoosa said. “If OpenAI and Perplexity gain traction with their browsers, they could access similar real-time data streams, potentially boosting the accuracy and efficiency of their AI models.”

That said, since Google, Edge, and other browsers have already integrated AI features, there’s a strong possibility that users may not turn to OpenAI or Perplexity for their AI needs.

“Users are often reluctant to switch from default, OS-integrated browsers like Chrome, Edge, and Safari, which are highly optimized for their respective platforms,” Shah said. “Furthermore, enterprise adoption will be contingent upon the perspectives of CIOs, who will need to assess the privacy, security, and manageability of these new browsers.”

The shift presents both a challenge and an opportunity for firms like OpenAI and Perplexity, which could offer CIOs greater control by integrating enterprise app APIs directly into AI-native browsers, creating a more streamlined and secure environment for search and information access.