Microsoft Corp. (NASDAQ: MSFT) rose over 1.5% in pre session on Monday as the default search engine for Samsung Electronics Co. smartphones, Bing may take the place of Alphabet Inc.’s Google, the New York Times said on Sunday. Shares of Alphabet Inc. Class A (NASDAQ: GOOGL) dropped over 4% to $104.69 in pre trading session.
Suwon-based According to the source, Samsung, the world’s biggest smartphone manufacturer, is considering making the transition, putting nearly $3 billion in yearly income at risk for Google. With the inclusion of OpenAI’s technology to give ChatGPT-like replies to user questions, Bing’s challenge to Google’s search supremacy has grown more credible in recent months.
According to IDC research, Samsung will sell 261 million smartphones in 2022, all of which will run Google’s Android software. The Korean business has long had relationships with both Microsoft and Google, and its devices come preinstalled with a library of both companies’ programs and services, such as OneDrive and Google Maps. According to the source, negotiations are still underway, and Samsung may opt to maintain Google as its primary supplier.
To prevent losing momentum, Google is working on many projects to refresh and revitalize its search offerings. These include incorporating artificial intelligence characteristics into its existing products through a project called Magi, which has more than 160 employees working on it, according to the Times.
Google is “excited about bringing new AI-powered features to search and will share more details soon,” according to Lara Levin, a Google spokesperson. A Google spokesperson declined to comment on the company’s talks with Samsung. A Samsung spokesman declined to comment.
The Mountain View, California-based search provider has a dominant market share in mobile devices in the US and much of the rest of the globe, thanks to its Samsung pact and one with Apple Inc., which the Times reports is valued at approximately $20 billion in yearly sales.
Large language models, such as the one underlying ChatGPT and Microsoft’s Bing’s chatbot capability, are not new to Google. Google’s chief business officer stated on the firm’s fourth-quarter results call in February that the company has been employing LLMs to predict the intent of users’ inquiries. Google is also releasing Bard, its own chatbot search helper, albeit at a glacial pace.
