April 17 (Reuters) – Alphabet (GOOGL. O) shares fell nearly 4% on Monday. A search engine on your device.
report, Published by The New York Times Over the weekend, Google’s $162 billion annual search engine business underscores the increasing challenges it faces from minor player Bing, which has recently come to the fore for integrating artificial intelligence technology behind ChatGPT. doing.
Google’s response to the threat was “panic,” with Google earning an estimated $3 billion in annual revenue from its deal with Samsung, the report said, citing internal messages.
Another $20 billion is tied to a similar deal with Apple (AAPL.O) that will be renewed this year, the report added.
Alphabet and Samsung did not immediately respond to Reuters’ requests for comment.
For decades, Google has dominated the search market with more than 80% share, but Wall Street fears the company will fall behind Microsoft in the fast-moving AI race.
Parent company Alphabet lost $100 billion in value on February 8th. A new chatbot, Bard, shared inaccurate information in his promotional video, and the company’s events went unnoticed.
On Monday, the stock fell to $104.90, wiping out nearly $50 billion from Alphabet’s market cap. Meanwhile, Microsoft outperformed the broader market with his 1% rise.
“Investors are concerned that developments in recent months have set alarm bells for Google as it becomes a lazy monopoly in search,” said James Caldwell, an analyst at Atlantic Equities.
Cordwell added that the potential cost of making Google Search more competitive than AI-powered Bing could also be a concern.
Google is racing to build an all-new AI-powered search engine that offers a more personalized experience than its current service, which will be upgraded with AI capabilities, according to a NYT report. .
Reported by Aditya Soni and Akash Sriram of Bangalore.Editing: Shinjini Ganguly
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