A recent article in the New York Times sheds light on the extent to which the success of OpenAI (and thus also Microsoft/Bing) is putting the market leader Google under pressure.
The NYT reports that Samsung is considering replacing Google with Bing as its default search engine. This is prompting hectic activity in Mountain View. The danger that Apple would reconsider its lucrative collaboration with Google was suddenly real.
Under the project name Magi, Google is again stepping up its AI efforts for search in response. A radically different, AI-supported search engine is apparently being developed internally. Individual ideas and features from this work should soon be available in the normal Google search.
This includes, for example, that users can ask questions directly in the Google browser, that Google image search can be supplemented with AI functions such as those of Midjourney, or that new languages can be taught through conversations. According to the article, Google does not plan to deviate from the display of advertising as a business model for the time being.
This whole scenario is a live example of the well-known “ innovator’s dilemma ”: while OpenA as a challenger has significantly fewer restrictions than Google and can therefore develop faster, Google has to take the old, established business model into account – if only to continue to please the stock market. Will this end well in the long term? We will see.