Google races to develop AI-powered search engine “Magi” amid rising competition and potential Samsung contract loss.
Amid increasing competition from AI-powered search engines like Microsoft’s Bing, Google is reportedly rushing to develop its own AI-powered search engine called “Magi”. The move comes as Samsung considers replacing Google with Bing as the default search engine on its devices, which could potentially affect Google’s $3 billion annual revenue from the Samsung contract. Bing has gained industry attention for incorporating new AI technology, making it a more formidable competitor to Google’s search business. With an additional $20 billion tied to a similar Apple contract set for renewal this year, Google is under pressure to innovate and maintain its dominance in the search engine market.

Google’s Magi project aims to provide a more customized and user-friendly experience. While Google has not revealed an exact launch date for Magi, it intends to introduce Magi’s features to one million users initially, with that number gradually increasing to 30 million users by the end of the year. Magi will be accessible only in the United States. Google is also working on other AI projects, like an image maker called “GIFI” and “Tivoli Tutor,” which helps people learn languages through texting.

Google became worried about AI-powered competitors when OpenAI, partnering with Microsoft, revealed a chatbot called ChatGPT in November. In response, Google formed a team to develop AI products for search. Updating its search engine has become crucial for Google to protect its $162 billion search business. Even though the Magi project will enhance the current search engine with new features, Google will still show ads in search results. Ads are essential for Google’s revenue, and some think AI-powered search engines might make ads less helpful to users.

In conclusion, Google’s top position is being tested as more AI search engines show up, and with Samsung’s contract discussions. The tech giant is doing its best to innovate and stay number one, which could cause changes in the industry, showing how important it is to stay updated and adjust to new search tech changes.