Microsoft's partnership with Open AI and the intense competition it presented Google in the web search market appeared to gain traction this week following reports of Samsung's contemplation to replace its Android phones with Microsoft's Bing.
The Stakes of this Partnership: Billions at Stake
According to the story by Business Insider, with Google having poured billions into Apple to ensure its search engine was the default, the stakes of this partnership are no less a matter of billions being at stake. Industry analysts said that Microsoft should invest whatever it takes to clinch the deal with Samsung.
This is because by doing so, they stand to gain immense market share as an increased number of users seek an alternative to Google's web search engine. An increased market share of web search would be highly lucrative for Microsoft, as explained by RBC analyst Rishi Jaluria.
Google Dominates Smartphone Market Share
Before Microsoft's ten billion dollar investment in OpenAI and their subsequent drive for integrating AI into Bing, the search engine was seen as a laughingstock in the industry. With the talk of a viable alternative to Google, Bing has become a serious contender, with Samsung seriously considering the offer, per the New York Times.
However, Google is not to be written off entirely, as they still dominate the smartphone market share, per analysts. Android, their operating system, is the most popular worldwide, while Chrome, their browser, is the most marketed.
Advantages of Partnering between Microsoft and Samsung
However, their slow and deliberative integration of AI into their search engine has left a window of opportunity for Microsoft's Bing. Microsoft has been extremely vocal in incorporating OpenAI-backed technology into its search engine, Office software, and GitHub code repository to capitalize off the AI wave.
Weighing up the pros and cons, experts agree that Microsoft should capitalize off this weakness for Google and invest heavily in partnering with Samsung. Google paid Apple $1 billion in 2014, but according to an article by PC Mag, the amount is estimated to have ballooned to $15 billion recently.
Read Also: Samsung Galaxy Smart Lock Options Confirmed: Here's When They'll Launch
A Potential Game-Changer for Microsoft: An Opportunity with Samsung
Not only will having a mobile operating system be immensely rewarding for the revenue, but it will also act as a much-needed jumpstart to the ever-elusive mobile market. Moreover, having Samsung in its pocket gives Microsoft immense leverage in its long-term plans to increase its market share worldwide.
Whatever the outcome of Samsung's decision, analysts agree that Microsoft is already in a much better spot in the search engine market than just a few months ago. With Bing's improved technology, and the company's growing focus on AI, Microsoft has shown itself to be a viable alternative to Google.
Whether it seizes the opportunity to ink a deal with Samsung remains to be seen, but for Microsoft, the time is now to make a statement and try to unseat the giant that is Google.
Related Article: Microsoft and Epic Expand Strategic Collaboration with Integration of Azure OpenAI Service
