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Screenshot of ChatGPT Atlas browser
(OpenAI)

OpenAI releases Chrome competitor browser “ChatGPT Atlas,” sending Google shares down

ChatGPT currently poses little threat to Google’s search business, but an OpenAI browser — and the data that comes with it — could change everything.

Jon Keegan

OpenAI took aim at Google today with its own AI-powered web browser called “ChatGPT Atlas.” The new browser, which is currently only available for Macs, aims to merge ChatGPT with a modern web browser.

An OpenAI team member on the livestream called it “a new kind of browser for the next era of the web.” The newly-unveiled browser could help OpenAI further insert itself into users’ interactions with their computers, and prompt users to more extensively incorporate OpenAI tools in their daily lives.

The initial screen the user sees in the new browser looks a lot like ChatGPT, with a text box in the center. But instead of just entering in the name of a website or search query, users can ask the browser questions. This may take you directly to a website, but it also might search through your tabs and browser history, or pull information together from around the web to deliver a response. Atlas is built on Chromium, the open source version of Google’s Chrome browser.

Google’s AI overviews aim to do a similar thing in response to a search query, but Atlas can deliver answers without pages of search results. Google’s Chrome browser has been key to its domination of online advertising, generating $54.2 billion last quarter alone. Even a small slice of that market would help OpenAI offset the massive losses it is incurring as it ramps up its ambitious infrastructure plans.

One of the key features in Atlas is a persistent “Ask ChatGPT” button which grants the chatbot access to the contents of the webpage being viewed, letting the user ask questions about what is on the page. However, when I tried to ask Atlas questions about the front page of the New York Times, a message popped up that said “ChatGPT is unable to access the contents of this website,” likely due to the ongoing lawsuit between OpenAI and the newspaper.

That’s a reminder that the contents of your journey around the web can be used to train future models. Atlas does give users the ability to opt out, but the setting is turned on by default (but not for Business or Enterprise subscribers). Users can also open an “incognito mode” tab that will not remember what you search for, or what sites you visit.

Atlas has a deep memory — not only does it remember your searches and what sites you visit — your ChatGPT history is available to Atlas as well to help customize responses (this can also be disabled).

Listed as a “preview” feature, Atlas also has a built-in “Agent mode” that will control the web browser to complete tasks on its own. In the livestream, a demo showed Atlas visiting a supermarket website, and adding items to an order based on a recipe. The task took about 2 minutes to fill the cart.

Shares of Google took a nosedive before the announcement on Tuesday, dropping as much as 4%. After the livestream announcing Atlas, shares recovered slightly, but the stock was still down about 1.7%.

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Report: Boeing could unveil 500-jet order from China during Trump’s visit later this month

Shares of Boeing are up nearly 4% on Friday afternoon, following a Bloomberg report that the company could be close to finalizing a deal to sell 500 planes to China.

The deal was first reported in August and would be one of Boeing’s largest ever.

According to Bloomberg’s sources, the deal could be officially unveiled when President Trump travels to China at the end of the month. That trip could be delayed given the war in Iran. The deal, sources say, could still fall apart — similar language to when it was first reported on more than six months ago.

Boeing has been on the outside of the Chinese market, in terms of new orders, since 2019 amid escalating US-China trade tensions.

According to Bloomberg’s sources, the deal could be officially unveiled when President Trump travels to China at the end of the month. That trip could be delayed given the war in Iran. The deal, sources say, could still fall apart — similar language to when it was first reported on more than six months ago.

Boeing has been on the outside of the Chinese market, in terms of new orders, since 2019 amid escalating US-China trade tensions.

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Why software shares are withstanding the war jitters

The outbreak of the war in Iran has clearly rattled investors and created a few clear winners — mostly energy stocks — and losers — consumer staples, airlines, and, well, more or else everything else.

But there is one interesting outlier to that Manichaean market dynamic.

Software shares — often the same companies that the market was giving up for dead just a few weeks ago due to overexpectations of an AI-driven disruption — have been holding up remarkably well.

These companies, including Intuit, ServiceNow, Datadog, Snowflake, IBM, Workday, and Oracle, have actually had a pretty decent run since the war started with a combined US-Israeli attack on Iran last weekend.

A new note from RBC Capital’s Rishi Jaluria suggests this isn’t just a fluke. Looking at the performance of software stocks during periods of geopolitical stress and market volatility over the last 10 and 25 years, his team found that software shares appear fairly well insulated when these broader shocks hit. RBC wrote:

“The defensive nature of SaaS models and the mission-critical nature of many core software systems at the enterprise level (e.g., in the absence of mass layoffs that may create seat-based headwinds, geopolitical uncertainty and/or market volatility typically will not cause an enterprise CIO to consider ripping out their ERP, CRM, Cyber systems, etc.”

I briefly got Jaluria on the phone yesterday, and he explained a bit more about why he thinks investors might see software as a decent place to hide out from the current chaos.

“With everything in the Middle East, you have to think about not just oil and gas input prices but also supply chains,” he said. “With software, you’re not really thinking about that.”

In other words, there is no equivalent of a closure of the Strait of Hormuz that software investors have to worry about.

Others suggested that the near-term profitability of these giant software companies — aside from concerns about potential long-term disruption from AI — may look different in the face of the economic uncertainty that seems to be growing with the war, especially after a sell-off that has left them relatively attractively valued.

Mark Moerdler, who covers software stocks for Bernstein Research, says that while the AI worries are clearly real, software companies continue to be highly productive cash cows.

“Everyone is afraid that AI is a massive disruptor, and all these articles you read talk about AI as massive disruptor or the world is ending or whatever,” he said. “You don’t see it in the fundamental numbers of the companies I cover. They are delivering GAAP profits, free cash flow, and they’re good investment ideas.”

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