Shares of Alphabet fell over 7% on Wednesday after Apple executive Eddy Cue said he believes AI search engines may eventually replace traditional search platforms like Google. The remarks, delivered during a federal antitrust trial, raised questions about the future of default search partnerships and market dominance.
Apple Executive Suggests Shift to AI Search in Safari
Speaking in court, Eddy Cue, Apple’s services chief, stated that Apple plans to add search options from OpenAI, Perplexity, and Anthropic to its Safari browser. His comments suggested a potential shift away from reliance on traditional search engines, which could disrupt Google’s role as the default provider.
Antitrust Case Threatens Google–Apple Revenue Agreement
The comments came as part of the Justice Department’s antitrust lawsuit against Alphabet, which alleges Google unlawfully dominates digital ad markets. A major focus of the case is Google’s multi-billion-dollar payments to Apple for default search placement — reportedly up to $20 billion per year.
Stock Market Reaction and Industry Implications
Following Cue’s testimony, Alphabet shares dropped more than 7% and Apple shares fell 2%. Cue admitted he was worried about the financial impact of losing Google’s revenue share, though he said Google should remain Safari’s default for now. He noted that Safari search usage declined in April, attributing the shift to rising AI search adoption.
As AI search engines gain traction, could Apple’s strategic pivot reshape how users discover information — and challenge Google’s dominance in search?
