Google Reportedly Goes Into 'Panic' As Samsung Considers Microsoft's Bing AI For Default Search Engine

Alphabet Inc.’s GOOGL GOOGL, Google and Microsoft Corporation’s MSFT age-old rivalry is at its peak, considering the latter has, at last, managed to make the former “panic.”

What Happened: Google employees were reportedly in a state of “panic” after discovering that Samsung Electronics Co, Ltd was considering replacing Google Search with Microsoft’s Bing AI as the default search engine on its devices, reported New York Times, citing an internal message. 

The switch could potentially risk an estimated $3 billion in annual revenue.

A similar contract with Apple Inc. AAPL, which will be up for renewal this year, is also tied to an estimated $20 billion. 

See Also: Ethics or Profit? Microsoft’s Layoffs Reportedly Target AI Team Amid Google Rivalry

Google is racing to build an all-new search engine powered by AI and upgrading the existing one with new features as competitors like the new Bing are posing the most serious threat to the tech giant’s search business in 25 years, the report noted citing internal documents.

Last year, Google’s search business was worth $162 billion and appeared impregnable until the potential crack caused by Samsung’s consideration to switch search engines. 

Although not confirmed, the assumption inside Google suggests the reason for this consideration has something to do with Microsoft’s work with AI. Negotiations are still ongoing and Samsung could ultimately decide to stick with Google.

Nevertheless, in the sprint rooms, Google employees are working on a project named “Magi,” developing new features to be tested and fine-tuned for the upcoming search engine. The aim is to provide users with a highly personalized experience that anticipates their needs better than Google’s current service, the report stated.

Why It’s Important: Google has been concerned about the rise of AI-powered competitors since OpenAI demonstrated chatGPT, developed in collaboration with Microsoft in November last year. 

The Sundar Pichai-led company reportedly declared “code red” in December and eventually released its response to chatGPT and Bing AI by launching Bard earlier this year. 

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