Samsung, the world’s leading smartphone maker, is reportedly considering replacing Google with Microsoft’s Bing as the default search service on its devices. According to a recent report by The New York Times, this move could put at risk roughly $3 billion in annual revenue for Google.
Bing’s threat to Google’s search dominance has grown more credible in recent months with the addition of OpenAI’s technology to provide ChatGPT-like responses to user queries. Samsung, which shipped 261 million smartphones running on Google’s Android software in 2022, has long-established partnerships with both Microsoft and Google. Its devices come preloaded with a library of apps and services from both, such as OneDrive and Google Maps.
Negotiations are still ongoing, and Samsung may yet decide to keep Google as its default provider. Google, for its part, is working on several projects to update and renew its search services to avoid losing ground. These include adding artificial intelligence features to its existing offerings, under a project named Magi, which has more than 160 people working on it.
A Google representative did not comment on the company’s negotiations with Samsung, and a representative from Samsung declined to comment. Between its Samsung deal and one with Apple, which The New York Times report valued at roughly $20 billion in annual revenue, Google has a commanding market share in mobile devices in the US and much of the rest of the world.
Large language models, such as the one underpinning ChatGPT and the chatbot functionality in Microsoft’s Bing, are not new to Google. The company has been using LLMs to anticipate the intent of users’ queries, as its chief business officer said on the company’s fourth-quarter earnings call in February. Google is also rolling out Bard, its own chatbot search assistant, though doing so at a very cautious pace.
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For Digital Products and Services: Maurisys Software.