Market panic over nothing: Google recovers after unrest about OpenAI browser

Google’s share price took a big hit on Thursday after news of a new browser from rival OpenAI. Within hours, a huge amount of stock market value evaporated. There was a moment of panic, but recovery did not take long.

Alphabet loses 160 billion after AI panic

Alphabet, Google’s parent company, lost more than four percent in value on Thursday. The price fell from over $257 to a low of approximately $246.70. As a result, more than 160 billion dollars in stock market value evaporated within a few hours.

The reason for the decline was the announcement of ChatGPT maker OpenAI. The tech company presented its own AI browser, called ChatGPT Atlas. The news immediately caused unrest on the stock market. Investors feared that the new browser would pose a threat to Google Chrome, still one of the most used browsers in the world.

But the panic turned out to be short-lived. Alphabet’s share price rebounded within a few hours. Tech analysts and users quickly discovered that OpenAI’s browser is largely based on Google Chrome. In essence, Atlas is just “Chrome with an OpenAI layer on top,” Kobeissi said on X.

Despite all the panic, Alphabet shares ultimately closed with a loss of 2.21 percent. In the pre-market, the recovery appears to be continuing. The price there is at $257, which would fully make up for yesterday’s loss if that level is maintained.

Race for the best AI browser in full swing

Google investors can breathe a sigh of relief for now. Yet there is more to it than just a new look. ChatGPT Atlas has promised smart features, such as a browser with memory and can provide contextual help. There is also an ‘agent mode’ that allows the browser to independently perform tasks, such as booking a flight, filling out forms or summarizing documents.

OpenAI is not alone in its mission to make browsers smarter with AI. For example, Perplexity recently launched the AI ​​browser Comet. Google is also not standing still and is increasingly integrating its Gemini model into Chrome. The battle for the ‘smartest’ browser is therefore in full swing.