Gemini and ChatGPT Competition Heats Up

The world's largest retailer, Walmart, is partnering with Gemini to create a new shopping experience. When users ask questions or search using Gemini, the assistant will automatically recommend relevant products from Walmart and Sam's Club. These suggestions are drawn from the user's past online and in-store purchase history.

For customers who have linked their Walmart accounts, the AI can tailor recommendations specifically to their habits. Additionally, the partnership enables rapid delivery of in-store items, ranging from three hours to as little as 30 minutes. This integration represents a significant shift toward what Walmart CEO John Furner calls "agent-led commerce."

"The transition from traditional web or app search to agent-led commerce represents the next great evolution in retail. We aren't just watching the shift, we are driving it," Furner stated in a press release.

Underpinning the Walmart deal is the launch of the Universal Commerce Protocol. Google CEO Sundar Pichai described this as a new open standard designed to allow agents and systems to communicate across every step of the shopping journey. Google developed this protocol in partnership with companies including Shopify, Etsy, Wayfair, and Target.

OpenAI is pursuing a similar strategy. In September, the company unveiled its own Agentic Commerce Protocol, developed alongside Stripe. This protocol powers the "Instant Checkout" feature in ChatGPT, allowing users to buy items directly from Etsy and Shopify merchants.

According to Sundar Pichai, the Google protocol aims to streamline the consumer experience: "If a shopper is looking for a suitcase, the protocol allows retailers to instantly offer a new-member price or prompt loyalty enrollment." He noted that transactions can be completed in just a few taps through Google Pay without leaving the chat.

Despite trailing ChatGPT in total user numbers, Gemini is closing the gap and outperforming competitors in key areas. The launch of Gemini 3 in November marked a turning point for Google. The update was well-received by consumers and industry leaders, leading to a surge in Google's stock price.

The release forced a reaction from OpenAI CEO Sam Altman, who reportedly declared a "code red" emergency. The momentum is also attributed to Google's integration of Gemini across its broader ecosystem, including Search, Android, and Google TV.

Industry leaders have taken notice. Salesforce CEO Marc Benioff publicly stated he would switch from ChatGPT to Gemini, describing the new version as "insane" in a viral post.

The competition between Google Gemini and OpenAI ChatGPT is evolving from a simple feature race into a battle for infrastructure dominance. By securing partnerships with retail giants like Walmart and establishing open commerce protocols, Google is aggressively positioning itself to lead the next era of AI-driven retail. As these technologies become more integrated into daily shopping habits, the distinction between search and purchase continues to blur.