Google is revamping Search under project Magi

Google is officially in scramble mode.

According to a report from The New York Times, the search giant is rushing to counter the rise of ChatGPT and Microsoft's AI-powered Bing with a brand new set of AI search features developed under the codename "Magi." The new tools are slated to arrive next month, with additional updates planned for the fall.

Initially, the rollout will be tightly guarded. Magi will be available exclusively in the United States and capped at a maximum of one million users to start. While exact product mechanics remain under wraps, the features are expected to build on the conversational interface pioneered by Google's Bard chatbot.

The $3 billion wake-up call

Google's sudden urgency isn't just about saving face. Its core business deals are actively on the line.

The Times reported that Samsung is considering swapping out Google for Bing as the default search engine on its mobile devices. That single partnership is worth an estimated $3 billion in annual revenue to Google. For perspective, Google has a similar default search contract with Apple worth roughly $20 billion.

Whether Samsung is genuinely impressed by Microsoft's rapid AI progress or simply leveraging Google's moment of vulnerability in contract negotiations isn't entirely clear. But the threat was real enough to set off shockwaves inside Mountain View.

Beyond project Magi, Google is also blueprinting a more radical, ground-up overhaul of its search engine. That ambitious long-term redesign, however, currently has no clear release timetable.

Building a fleet of AI sidekicks

Google isn't just fixing search. It is also building out a suite of companion tools to box out Microsoft across the web.

According to the report, the company is working on an AI image generation tool dubbed GIFI, as well as a specialized language learning platform called Tivoli Tutor.

Perhaps the most direct counter to Microsoft is a feature called Searchalong. The tool integrates an AI chatbot directly into Google's Chrome browser, allowing users to ask questions about the webpage they are currently reading. If that sounds familiar, it is basically Google's version of Microsoft's Bing AI sidebar in Edge.

Why it matters

For everyday searchers, the immediate impact will be small. With access restricted to just one million users in the US next month, most people will have to wait until fall to see how Google actually handles conversational search.

Strategically, however, this marks the first real crack in Google's search monopoly in nearly two decades. Hardware giants like Samsung have taken Google's billions and shipped Google search by default for years. The fact that Samsung even flirted with Bing proves that conversational search is no longer viewed as a novelty, but as a distribution-shifting technology.

In our view, Google's response looks reactionary. Projects like Searchalong feel like direct clones of Microsoft's playbook, and rolling out an experimental project like Magi to a limited group suggests internal caution rather than bold confidence. Still, with Chrome and Android commanding billions of screens, Google only needs a "good enough" AI search engine to protect its turf. The real fight begins next month.