What happened: Alphabet shares fell nearly 3% on Monday following the news that Samsung was considering shifting from Google to Microsoft's Bing as the default search engine on its smartphones and tablets. Details: According to The NY Times, Google's reaction to the news was "panic." The tech giant now has more than 160 employees working on AI features under its so-called "Magi" project. Why it matters: Microsoft and Google have been locked in a race to incorporate AI features into their products. Microsoft added OpenAI's ChatGPT technology to its Bing search engine earlier this year, while Alphabet has been waiting to integrate its chatbot technology into its search engine, though it did release its Bard chatbot to the public last month. What the numbers say: Google brings in an estimated $3B annually from the Samsung contract — about 1% of Alphabet's $282B in annual revenue. The company also has a similar Apple contract, worth a reported $20B annually, that's up for renewal later this year. Competing stocks: Following the news on Monday, shares of Google parent Alphabet fell to a low of $105.33 before closing at $106.42. Since ChatGPT was launched in late November, Microsoft shares are up 21%, higher than Alphabet's 10% gain.
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