AI Startups See Google Chrome Susceptible to Next Generation of Smart Browsers

AI Startups See Google Chrome Susceptible to Next Generation of Smart Browsers AI Startups See Google Chrome Susceptible to Next Generation of Smart Browsers

Perplexity just launched an AI-powered web browser called Comet for select subscribers. The San Francisco startup, valued at $14 billion, aims to disrupt Google Chrome and Google’s search dominance.

Comet comes with Perplexity’s AI chatbot pre-installed to replace traditional searches. It also features Comet Assistant, an AI agent that can book meetings, send emails, make purchases, and provide daily briefings.

OpenAI is reportedly working on its own AI browser to challenge Google Chrome too, according to Reuters.

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Steve Jang, founder at Kindred Ventures and early investor in Perplexity, told Fortune startups always find ways to chip away at tech giants:

“Every tech cycle, everyone questions whether or not a new startup can—how can they possibly defeat or even get significant market share away from these legacy platforms, and they always do.”

Google still has a massive advantage with over 3 billion users on Chrome, roughly 68% market share, and vast user data collection. Switching browsers is tough for consumers.

Former Google product manager Ari Paparo said AI browsers need to be significantly better to convince users to switch:

“What is it that a browser from Perplexity or a browser from OpenAI will do that’ll be 10 times better than what Google does? They already have search, they already have AI, they already have the browser. That’s a pretty tough hill to climb.”

The timing could favor startups, as Google faces uncertain remedies from its antitrust case. One possibility is spinning off Chrome, loosening Google’s grip.

Comet isn’t flawless. Like many AI tools, it still struggles with hallucinations, TechCrunch reported.

Jang remains bullish on Perplexity’s path forward. The company already launched a voice-enabled mobile app and AI agents through Perplexity Labs.

“Monopolies in technology are great opportunities for startups, and by design they are meant to be attacked,” Jang added.

OpenAI already competes head-to-head with Google on AI: 29% of consumers use OpenAI regularly, versus 30% for Google’s Gemini, per Wedbush survey.

The AI browser race is heating up. Google’s reign over search and browsers is under serious threat for the first time in decades.

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