Samsung, one of the largest electronics companies in the world, is reconsidering its current partnership with Google and may replace its default search engine, Google Search, with Microsoft’s ChatGPT-powered Bing. This news was reported by the New York Times and has caused panic within Google, as its contract with Samsung to use their search engine is reportedly worth $3 billion.
ChatGPT is a tool created by OpenAI and backed by Microsoft which has gained immense popularity in the last few years and is seen as a possible threat to Google’s biggest revenue source, search. It was first released in November 2022 and was followed by Google’s own chatbot, Bard, months later.
Google has been working on AI-based projects for many years, and the rise of ChatGPT has caused it to increase its focus on products that are similar to Microsoft’s, such as its large language model, LaMDA.
The Times also discussed upcoming changes to Google’s search product, as well as the possibility of a completely AI-powered search engine. In addition, the Times reported that Google also has a contract with Apple that is up for renewal this year.
Samsung is an international consumer electronics company founded in 1938 in South Korea. Over the years they have come to manufacture a wide variety of products, including mobile phones and consumer electronics. Their global market share was 12.5 % in Q4 2022 according to Counterpoint Research.
Satya Nadella is the CEO of Microsoft and has been in his role since 2014. He is widely recognized for leading the company’s digital transformation and for introducing a number of innovative strategies, such as “Cloud, mobile, and AI”. With his leadership, Microsoft has done well this past decade, with the company’s market capitalization tripling since he became CEO.
