Bullish

Google Abandoned ChatGPT-Like LMChat Year Early Due To Cannibalization Fears

2026-08-02 11:42:37

OpenAI lead reveals Google DeepMind shelved LMChat, a ChatGPT-equivalent developed a year prior, citing fears of cannibalizing existing search business.

Woofun AI reports that Tibo Sottiaux, OpenAI's Product Lead, developed an internal chatbot named LMChat at Google DeepMind approximately one year before the public release of ChatGPT. The project featured functionality nearly identical to the eventual market leader but was never launched by Google. Sottiaux stated that leadership decided against releasing LMChat due to concerns it would cannibalize existing business lines, preventing DeepMind from deploying a product perceived as a threat to Google's core operations.

WOOFUN AI

Impact Assessment · Quick Read

This revelation highlights how risk aversion regarding internal competition can cause incumbents to miss transformative market shifts. By prioritizing the protection of legacy search revenue over innovation, Google allowed a smaller competitor to define the generative AI landscape. This dynamic suggests that established tech giants may continue to face disruption from agile startups willing to cannibalize their own products to capture new growth vectors.
Generated by WOOFUN AI · For reference only, not investment advice

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