Samsung’s decision causes Google’s share prices to drop

A few days ago some pieces of information suggested that Samsung could switch Google’s browser on its Galaxy devices with Bing owing to the latter’s AI capabilities. All this situation created panic. As a result of this situation, some fresh reports indicate that the share prices of Alphabet have dropped by 4%. In response to Microsoft and OpenAI collaboration, Google’s search engine business worth $162 billion is facing a challenging time.

Nearly most of the users on the internet are aware of the benefits of the search engine integrated with ChatGPT. Definitely, it would be a piece of shocking news for Google about learning that Samsung is considering Bing as the default browser on its products. Some reports even claim that Microsoft and Samsung talks have entered the negotiation phase. This is also due to the projected $3 billion in annual revenue that Google derives from its contract with Samsung.

Amid Alphabet’s demise, Microsoft’s shares increased by 1%

Well, if the two companies are successful with their future plans, then it means that Google will not only lose the $3 billion contract but a partner as well. In addition to this, other companies like Apple could also be influenced by this deal. Do remember that Apple has a $20 billion contract with Google that is due to be renewed this year.

Neither Samsung nor Google has responded to this news. However, Google mentioned to Reuters that it will soon introduce AI functionalities to its search engine. Although Google has previously experimented with Bard which resulted in a loss of $100 billion on February 8. It was due to the inaccurate information that was shared in a promotional video. All of this failed the company event.

With the news of the agreement between Samsung and Microsoft, Alphabet’s stock price dropped to $104.90, eliminating close to $50 billion from the company’s market value. Microsoft, on the other hand, performed better than the whole market and increased by 1%.