After reports of Samsung having negotiations with Microsoft to make Bing the default search engine on Galaxy devices started making rounds of the internet, Google went into panic mode. Well, as a result, the share prices of Google's parent company, Alphabet, fell by 4%. Google's $162 billion-a-year search engine business is currently facing these challenges, thanks to Microsoft's integration of Open AI's artificial intelligence technology, ChatGPT.
The world knows the advantages of using ChatGPT and the benefits a user can get when it is integrated into a search engine. Google was shocked to learn that Samsung is considering Microsoft Bing as the default browser, and the talks have gone into the negotiation stage. This is also because Google earns an estimated $3 billion in annual revenue from Samsung's contract.
Microsoft's shares saw growth by 1% amidst the downfall of Alphabet
If the deal between Samsung and Microsoft goes through, it would mean Google loses not only a $3 billion contract but also a valuable partner. In fact, the deal could also influence other players such as Apple, with which Google has a $20 billion contract that is up for renewal this year.
In response to Reuters, Google commented that it is working on bringing AI capabilities to its search engine without commenting anything on its association with Samsung. Samsung also did not respond to this news. Alphabet lost $100 billion on February 8 after reports of its chatbot Bard, which shared inaccurate information in a promotional video and failed the company event.
Now, thanks to the reports of Samsung and Microsoft's deal, Alphabet's stock fell to $104.90, erasing nearly $50 billion from Alphabet's market capitalization. Microsoft, on the other hand, outperformed the broader market and saw a rise of 1%.
