Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) shares are trading lower Thursday afternoon following a report suggesting OpenAI will launch a Search tool.

What To Know: According to a Financial Times report, OpenAI is planning to launch an online search tool called "SearchGPT" aimed at disrupting Google's Search dominance.

The report indicates that SearchGPT will initially only be available for a select group of users. OpenAI reportedly opened a 10,000-person waiting list on Thursday to test the new product.

Financial Times reported that the tool will be visually different than OpenAI's ChatGPT, resembling a search engine that allows users to click links and be directed to external websites. The company reportedly plans to eventually integrate the new AI search features into ChatGPT.

OpenAI is backed by Microsoft Corp (NASDAQ:MSFT), which has been Google's biggest competitive threat to Search in recent years.

Google reported financial results for the second quarter earlier this week. The tech giant turned in better-than-expected results as revenue climbed 14% year-over-year, driven by ongoing strength in Search and momentum in Cloud.

Several analysts reacted positively to early momentum in Google's AI-powered Search tools, highlighting positive feedback on the AI Overview tool. RBC Capital Markets on Wednesday pointed to higher quality queries with generative search and suggested there could be further upside from the rollout of ads above and below the AI Overview box.

GOOG Price Action: Alphabet shares were down 1.95% at $170.97 at the time of publication, according to Benzinga Pro.

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