Alphabet Shares Fall on Reports of Samsung Replacing Google Search with Bing

Alphabet shares fell as much as 4% on Monday following a report South Korea’s Samsung Electronics was considering replacing Google with Microsoft-owned Bing as the default search engine on its devices. After this report, Alphabet lost nearly $57 billion in market value. A report by the New York Times underscores the growing challenges Google’s $162-billion-a-year search engine business face from Bing. Bing gains huge popularity recently after the integration of the artificial intelligence tech behind ChatGPT.

Google’s reaction to the threat was “panic” as the company earns an estimated $3 billion in annual revenue from the Samsung contract. Google is also going to renew the $20 billion deal with Apple which is also in danger. Google has for decades dominated the search market with a share of over 80%. But now, Microsoft is in a fast-moving AI race.

Alphabet Shares Fall on Reports of Samsung Replacing Google Search with Bing

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Alphabet lost $100 billion in value on Feb. 8 after its new chatbot, Bard, shared inaccurate information in a promotional video. On Monday, the stock fell to $104.90 and erased nearly $50 billion from Alphabet’s market capitalization. On the other hand, Microsoft outperformed the broader market with a rise of 1%.

On the other hand, Google said it was working to bring new AI-powered features to Search without commenting on its association with Samsung. However, Samsung did not respond to a request for comment.

Elon Musk has also announced the launch of a rival of Google and Microsoft’s chatbot. It seems like the competition is going to be very high in the AI market. Let’s see What Google will do to get out of this situation.

See Also: Elon Musk to Launch ‘TruthGPT’ to Rival OpenAI and Google