SAN FRANCISCO, United States —
Google’s employees were shocked when they learned in March that South Korean
consumer electronics giant Samsung was considering replacing Google with
Microsoft’s Bing as the default search engine on its devices.
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For years, Bing had been a search engine
also-ran. But it became a lot more interesting to industry insiders when it
recently added new artificial intelligence technology.
Google’s reaction to the Samsung threat was
“panic”, according to internal messages reviewed by the New York Times. An
estimated $3 billion in annual revenue was at stake with the Samsung contract.
An additional $20 billion is tied to a similar Apple contract that will be up
for renewal this year.
Google’s reaction to the Samsung threat was “panic... An estimated $3 billion in annual revenue was at stake with the Samsung contract.
AI competitors such as the new Bing are
quickly becoming the most serious threat to Google’s search business in 25
years, and in response, Google is racing to build an all-new search engine
powered by the technology. It is also upgrading the existing one with AI
features, according to internal documents reviewed by the New York Times.
The new features are being created by
designers, engineers, and executives working in so-called sprint rooms to tweak
and test the latest versions. The new search engine would offer users a far
more personalized experience than the company’s current service, attempting to
anticipate users’ needs.
A mad dash for relevanceBillions of people use Google’s search
engine every day for everything from finding restaurants and directions to
understanding a medical diagnosis, and that simple white page with the company
logo and an empty bar in the middle is one of the most widely used webpages in
the world. Changes to it would have a significant impact on the lives of
ordinary people, and until recently, it was hard to imagine anything
challenging it.
Modernizing its search engine has become an obsession at Google, and the planned changes could put new AI technology in phones and homes all over the world.
Google has been worried about AI-powered
competitors since OpenAI, a San Francisco startup that is working with
Microsoft, demonstrated its chatbot ChatGPT in November. About two weeks later,
Google created a task force in its search division to start building AI
products, said two people with knowledge of the efforts, who were not
authorized to discuss them publicly.
Modernizing its search engine has become an
obsession at Google, and the planned changes could put new AI technology in
phones and homes all over the world.
The Samsung threat represented the first
potential crack in Google’s seemingly impregnable search business, which was
worth $162 billion last year.
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