A new report claims that Google learned back in March that Samsung was considering replacing the default search engine on its Galaxy smartphones and other devices. The company, which sells the most Android smartphones worldwide, has seriously considered using Microsoft’s Bing search engine instead.

The report by New York Times, based on internal messages from Google, claims that the company reacted with “panic” to this news. The main reason is that Google receives $3 billion annually from Samsung to be the default search engine. The report adds that Google assumed that Microsoft’s work on adding artificial intelligence features like Bing Chat to its Bing search engine was the big reason it was considering the move.

According to reports, talks between Samsung and Microsoft and between Samsung and Google are not complete, so it’s still possible that Samsung will stick with Google for its search needs in the end. However, the very thought of losing Samsung spurred Google to develop and add more AI search features.

The story says that Google is reportedly working on a new project codenamed Magi, which will add AI features to its existing search engine. Google CEO Sundar Pichai hinted that its search service would soon add AI to the conversation in an interview with the Wall Street Journal earlier in April.

Today’s New York Times story says:

Magi would leave ads in the mix of search results. Search queries that might lead to a financial transaction, such as buying shoes or booking a flight, for example, will still show ads on their results pages.

The story says Google may officially unveil Magi to the public in May. That’s also when the company will hold its annual Google i/O developer conference on May 10. It will initially add these new AI features to about 1 million users in the U.S. and may expand to 30 million users by the end of 2023, according to the story.

The story also mentions several other AI products in development at Google. This includes its AI art generator called GIFI, a way for people to learn different languages ​​called Tivoli Tutor, and Searchalong which will add a chatbot that runs alongside Chrome.