Samsung’s switch to AI-powered Bing sends Google into a “panic”

Samsung's switch to AI-powered Bing sends Google into a

The appeal of AI-Bing is pushing Google’s AI developments into overdrive

Earlier this year, Microsoft’s Bing search engine received a major boost with its new AI features, and now Samsung are reportedly considering ditching Google on their devices in favour of Bing’s new AI-enabled version. 

If Samsung decides to ditch Google and replace it with Bing, Google, and its parent company Alphabet, are reportedly set to lose $3 billion annually from its Samsung partnership. This possibility has sent Google into a “panic” and has set the company’s AI developments into overdrive. 

While $3 billion is not a huge amount of money for a company like Alphabet, losing Samsung would be a major hit to Google’s reputation, and a hit that could inspire other companies to ditch Google. Apple has a similar contract with Google that is worth $20 billion, and this contract is due to be renewed later this year. If Google does not catch up with its own AI offerings, Apple may also consider abandoning Google. 

Bing’s resurgence has the potential to loose Google a lot of money by destroying Google’s pseudo-monopoly on the search engine market. Google needs to compete with Bing in the AI search engine battle, but it remains to be seen if Google can deliver the same impressive results that Bing has achieved with ChatGPT. 

Samsung's switch to AI-powered Bing sends Google into a

Bing’s AI innovations represent the only true competition that Google has faced in the search engine market for over a decade, and Google are right to push forward with their AI development to prevent any loss in market share. The lesson to be learned here is that competition is good for consumers, and that even Google can be threatened by the right technological innovations. Whether or not Samsung will ditch Google remains to be seen, but their active consideration of this option has already caused Alphabet’s share price to plummet. Yesterday, Alphabet’s share price dropped by 4%, erasing $55 billion from the company’s market value.

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