For years, Google has had little competition when it comes to its dominance in the world of search engine results. However, OpenAI’s ChatGPT technology could be changing that now. Investors are growing concerned that Google, part of Alphabet Inc., may be losing clicks to Microsoft’s Bing search engine, which has incorporated ChatGPT capabilities.
On Monday, Alphabet’s stock experienced a dip of 4% following a report that Samsung Electronics had considered replacing Google with Bing as the default search engine on its devices. Then, two days in February saw a decline of 12% due to a demonstration of Google’s homegrown chatbot service, Bard. Alphabet, however, consolidated its AI research groups into one unit the Thursday after, in a move CEO Sundar Pichai said will fast-track progress.
As of now, Alphabet Inc. has a worldwide market share of around 85% while Microsoft’s share stands at 8.9%. Although Alphabet is expected to still be the major player even if its market share is reduced, Michael Lippert, portfolio manager of the Baron Opportunity Fund, said that results in a vast reduction that could lead to loss of revenue.
Consequently, Alphabet’s stock has risen 20% this year due to a rebound in technology stocks, but the imminent challenge to its long and supreme search engine reign is a reason to cause concern. To fend off this risk, Alphabet should furthermore improve the accuracy of its AI-powered search results, lest it lose clicks and likewise money.
Alphabet Inc. is a multinational conglomerate headquartered in California, USA and owned by parent company Google. It was founded by Doctors Larry Page and Sergey Brin in 1998 as “Google”. From its growing success, the company rebranded to “Alphabet” in 2015 and has since become one of the most valuable corporations in the US. The company focuses mainly on the development of new technologies and invests in a variety of high potential businesses and research projects.
Sundar Pichai is the CEO of Alphabet Inc., having served in this capacity since August 2015. An engineer by trade, Pichai was formerly an executive and product chief at Google, having been recruited in 2004 by Larry Page and Sergey Brin. After taking the helm at Alphabet, he has overseen dramatic growth in the company’s profits and laid the foundation for further tech projects like Google’s AI-powered Duplex, which has enabled its devices to hold natural conversations.
