Google stock fell Monday in the wake of a report that said its longtime ally, smartphone maker Samsung, could switch to Microsoft's Bing as its default search engine amid the rise of artificial intelligence chatbot tools. As shares of Google-parent Alphabet fell, MSFT stock moved up.
Google could lose about $3 billion in annual revenue if Samsung switches to Microsoft's Bing, said a report in Sunday's New York Times.
GOOGL stock sank 2.7% to close at 105.97 on the stock market today. MSFT stock climbed 0.9% to 288.80.
Amid its partnership with startup OpenAI, Microsoft is integrating generative artificial intelligence technology into its Bing search engine. Meanwhile, Samsung, which builds smartphones using Google's Android software, has featured Google's search engine on devices.
Google Stock: Apple iPhone Deal Eyed
Some Google stock analysts also have wondered aloud whether an internet search deal between Apple and Google could be impacted if Microsoft's Bing gains market share. That deal is worth $17 billion to $20 billion, reports say.
Google is the default search engine on iPhones. Google pays Apple billions of dollars annually in so-called "traffic acquisition costs," or TAC. Apple could pressure Google to pay more, said a Barclays report.
Microsoft is the biggest investor in OpenAI. Microsoft also is integrating OpenAI's chatbot technology into Office productivity software.
OpenAI's ChatGPT is only one of several generative AI technologies that could roil a host of industries by creating text, images, video and computer programming code on their own.
Google Shares Up For The Year
Further, generative AI technology already is finding applications in a number of areas. They include marketing, advertising, drug development, legal contracts, video gaming, customer support and digital art.
As of Friday's market close, GOOGL stock had advanced 23% this year. By comparison, the S&P 500 had gained 8%. Further, the Nasdaq was up nearly 17%.
Earnings for GOOGL stock are due April 25. Meanwhile, Microsoft reports earnings the same day. MSFT stock has gained 19% in 2023.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
