Google's stock dropped Monday following a report stating that its longtime partner, Samsung, may switch to Microsoft (MSFT) Bing for its default search engine due to the growth of artificial intelligence chatbots. MSFT's stock rose as shares of Alphabet, the parent company of Google (GOOGL), fell.
A report in the Sunday New York Times said that Google could lose around $3 billion a year in revenue if Samsung switched to Microsoft's Bing.
GOOGL's stock fell 3.2% in the morning trading on today's stock exchange. MSFT stock rose a tiny bit to close to 288.
Microsoft, in partnership with OpenAI, is integrating artificial intelligence into its Bing Search Engine. Samsung, which makes smartphones based on Google's Android operating system, features Google's search tool.
Apple iPhone deal eyed by Google Stock
Several Google stock analysts have also wondered out loud if a deal for internet search between Apple (AAPL), and Google, could be affected if Microsoft's Bing gains more market share. Reports say that the deal is worth between $17 billion and $20 billion.
Google is the default iPhone search engine. Google pays Apple millions of dollars in "traffic acquisition cost" (TAC) every year. Barclays reported that Apple might pressure Google to pay even more.
Microsoft is OpenAI's largest investor. Microsoft is also integrating OpenAI chatbot technology in its Office productivity software.
OpenAI's ChatGPT technology is just one of many generative AI technologies which could disrupt a wide range of industries. They can create text, images and video on their own, as well as computer programming code.
Google Shares for the Year
Further, the technology of generative AI is already finding application in many areas. These include marketing, advertising and drug development. They also include video games, legal contracts, customer service, digital art, and video gaming.
GOOGL's stock price had risen 23% in the past year as of Friday. S&P 500 gained 8%, compared to GOOGL's 23%. The Nasdaq also gained nearly 17%.
GOOGL's earnings are due on April 25. Microsoft also reports its earnings on the same date. The MSFT stock price has risen 19% since 2023.