According to The New York Times, electronics giant Samsung may be about to replace Google as the default search engine in its range of mobile phones.
It is thought that Microsoft’s Bing search engine, which has recently begun to incorporate artificial intelligence (AI) features in its performance, would be a suitable replacement in Samsung phones.
Around $55bn (£44bn) of market value was erased from Alphabet, the parent company of Google, as the report from the NYT emerged. It is thought that the existing mobile search contract between Alphabet and Samsung generates around $3bn ($2.4bn) in revenue per year for Alphabet.
However, with this contract due for renewal, Google may have a tough job on its hands as it battles to hold onto dominance over other search engines. Similarly, Alphabet’s deal with Apple, which is reportedly worth a massive $20bn ($16bn) in revenue, also appears to be due for renewal, leaving Alphabet with some important deals to make.
Employees at Alphabet, and more specifically Google, have supposedly been taken aback by these reports, creating a level of panic amid an unprecedented level of search engine competition for Google. The emergence of AI, especially in the form of ChatGPT, may be the first serious threat to Google’s search engine dominance in decades. Google currently has a team of more than 160 people working on implementing AI features into its current search product, as well as other teams developing its dedicated AI technology, such as Bard*.
Samsung already has longstanding working relationships with both Alphabet and Microsoft, with a number of Microsoft apps and software pre-installed on Samsung devices. This suggests Samsung’s ultimate decision on its search engine will be a good indicator as to which company is winning the ongoing search engine war.
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