Google stock falls as OpenAI launches ChatGPT Atlas browser
On the stock market today, Alphabet (GOOGL) fell around 3% in midday trading to 248.92, retreating from its record intraday high of 256 reached on September 19, as reported by IBD. Despite the dip, Google stock remains up about 30% so far in 2025.
OpenAI’s new browser raises competition stakes
OpenAI’s new browser, ChatGPT Atlas, marks the company’s boldest move yet into Google’s territory. Announced during a Tuesday livestream, Atlas is initially rolling out globally on macOS, with Windows, iOS, and Android versions to follow soon.
OpenAI CEO Sam Altman unveiled the product on X (formerly Twitter), describing it as the future of how people will interact with the web. The AI-powered browser integrates ChatGPT directly into the browsing experience, allowing users to chat, summarize, and even take actions online, as per the report.
That vision poses a growing competitive threat to Google’s long-standing search business, which has been built around serving users web links rather than direct AI-generated answers, as per the IBD report.
ALSO READ: OpenAI launches ChatGPT Atlas browser in open challenge to Google – key points to know
Investor concerns: Google search and advertising at risk
The rise of generative AI continues to raise big questions for Google’s main source of revenue, digital advertising, as per the report. ChatGPT and other AI search competitors like Perplexity now deliver answers directly to users, potentially reducing the need to click on ads or traditional search results, as per the IBD report.Analysts say this shift could force Google to rethink how it monetizes search in an AI-first world. Some Wall Street observers have even speculated that OpenAI might eventually introduce advertising within ChatGPT, adding further pressure on Google’s ad business model, as per the IBD report.
Google’s AI push continues
In response, Google has been ramping up its own AI integration. The company recently embedded its Gemini AI model directly into the Chrome browser for all US desktop users, adding a dedicated button for in-browser AI assistance. Gemini can analyze web content, summarize information, and perform basic tasks, features aimed at keeping users within the Google ecosystem, as per the report.
Google has also rolled out “AI Overviews” in search, offering conversational summaries at the top of search results, a direct counter to ChatGPT’s answer-style approach, as per the IBD report.
Still, the long-term question for investors remains whether Google can maintain its advertising momentum as user behavior shifts toward AI-powered interactions.
What to watch next for Alphabet investors
Alphabet’s third-quarter earnings, due October 29, will be closely watched for any signs of how AI adoption and competitive pressures are affecting Google’s growth trajectory, as per the report.
OpenAI, meanwhile, continues to expand rapidly. Since launching ChatGPT in late 2022, the company has reached over 800 million weekly active users as of May, doubling its user base from February, as per the IBD report. Most of its revenue comes from paid ChatGPT subscriptions and licensing deals through Microsoft’s cloud platform.
FAQs
Why is Google stock down today?
Alphabet shares dropped after OpenAI unveiled ChatGPT Atlas, an AI browser seen as a threat to Google’s search and ad business.
When is Google’s next earnings report?
Alphabet is scheduled to report third-quarter earnings on October 29.