A story from The New York Times on Sunday said that Microsoft Corp.’s Bing may replace Alphabet Inc.’s Google as the default search service on Samsung Electronics Co. devices.
Suwon-based A report said that Samsung, the biggest smartphone maker in the world, is thinking about making the switch. If it does, Google could lose about $3 billion a year in income. Bing’s threat to Google’s search dominance has become more real in recent months, since OpenAI‘s technology to respond to user questions in a ChatGPT-like way has been added.
Alphabet’s stock fell 1% in New York before the market opened on Monday, while Microsoft’s stock rose by less than 1%.
IDC says that Samsung sold 261 million smartphones in 2022. All of them ran Google’s Android software.
The Korean business has worked with both Microsoft and Google for a long time, and its devices come with apps and services from both companies, like OneDrive and Google Maps. The report says that talks are still going on, and Samsung could still choose to keep Google as its preferred provider.
Google is working on a number of projects to update and improve its search services so it doesn’t fall behind. The Times said that one of these plans is to add AI features to its current services as part of a project called Magi, which has more than 160 people working on it.
A Google employee, Lara Levin, said in a statement that the company is “excited about adding new AI-powered features to search” and that more information will be released soon. A Google spokesperson didn’t say anything about the talks between the company and Samsung. A Samsung representative refused to say anything.
Between its deal with Samsung and its deal with Apple Inc., which the Times says brings in about $20 billion a year, the Mountain View, California-based search provider has a large share of the mobile device market in the US and in a large part of the rest of the world.
Google has used large language models before, like the one that supports ChatGPT and the robot feature in Microsoft’s Bing. Google’s chief business officer said on the company’s fourth-quarter earnings call in February that the company has been using LLMs to guess what users want when they search. Bard, Google’s own chatbot search helper, is also being rolled out, but very slowly.
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