Samsung is thinking about switching from Google’s Chrome browser to Microsoft’s Bing. Alphabet was taken aback by the announcement, and its stock dropped 2.5 percent on Monday. Microsoft’s stock, on the other hand, increased by 1%. Many believe that Bing’s successful AI chatbot experiment has caused Samsung to reconsider its collaboration with Google.
Why is Samsung abandoning Google?
The South Korean phone company has always been friendly with Microsoft. Samsung phones come with Microsoft Office software pre-installed. Furthermore, Samsung allows consumers to simply connect with Microsoft Windows. True, Microsoft’s Bing has lagged behind Google for the most part, but the advent of its AI chatbot has resulted in an increase in its usage.
When it comes to AI-powered web browser regimes, OpenAI-backed Bing’s chatbot appears to be the frontrunner. Meanwhile, Google is still reeling from the error made by its own AI chatbot Bard on the first day of its demonstration.
What impact will this have on Google?
Google pays mobile phone manufacturers billions of dollars each year to serve as its default search engine. For example, it pays Apple a stunning $20 billion per year. As a result of such efforts, Google now controls 90% of the search market. This enables Google to monetize its huge user base and earn billions of dollars in income through targeted advertising.]
According to the Times, the Google-Samsung partnership may not be renewed, causing the latter to go to Microsoft’s Bing. However, it’s unclear whether Microsoft will pay Samsung more than Google to be the default browser. According to Apple Insider, Google presently pays Samsung $3 billion every year.
Is artificial intelligence a threat to Google’s search business?
ChatGPT and other AI-powered applications represent a threat to Google’s search engine business. Although ChatGPT can give inaccurate results, it can provide consumers with immediate results rather than forcing them to wade through hundreds of search results littered with adverts, as Google does.
As a result, Google is pushing for more AI features to be made available to the general public, such as an AI-powered search engine to compete with Microsoft Bing. This initiative is known as “Project Magi.” The preparations for the current search engine are still in the early stages, and there is no set release date for the new search technology.