Jobaaj Stories
Shares of Tech giant Alphabet took a beating as investors rushed to sell the stock when reports announced that Samsung was considering the replacement of Google Chrome for Bing.
Bing, which couldn't compete with Chrome, has recently been in the news as it announced that it will be incorporating it's AI, ChatGPT into its search engine. Although Google announced the same with its AI Bard, ChatGPT has proven to be a more superior AI.
Although neither party has confirmed the news, should this news end up being true, Alphabet would suffer great losses. According to internal memos from Alphabet, the company earns around $3 billion annually from Samsung!
Moreover, if Samsung really does change gears from Chrome to Bing as default, other companies might consider the same. Apple's $20 billion contract is also up for renewal this year. Alphabet earns a significant amount of revenues from client contracts.
Although Chrome has maintained a market share of over 80% in the search engine market, the incorporation of AI into search engines has been a game changer which has renewed hope in Bing.
Google investors had lost faith in the company's AI when the same gave a wrong answer. That had resulted in a massive $100 billion loss in market cap! This news ended up fanning the flames as investors ended up selling the stock, which made the stock fall over 4% before seeing some recovery.
The stock of Google parent Alphabet closed at $106.42 per share, down 2.78%.
- Aman Agarwal
