Apple’s plan to introduce AI search providers in Safari marks a pivotal shift in the online search landscape, directly challenging Google’s long-standing dominance. The news led to a 7.3% drop in Alphabet’s shares, erasing around $150 billion in market value.
Apple Considers Generative AI for Safari Integration
According to testimony from Apple executive Eddy Cue in a federal antitrust case, Apple is actively exploring options to integrate AI search services like OpenAI and Perplexity into Safari. Cue acknowledged that Safari searches declined last month as users increasingly turned to AI tools, sparking industry speculation about changing search behaviors.
Impact on Google’s Ad Business and Regulatory Exposure
Google’s search engine, the default on Safari, reportedly earns the company nearly $20 billion annually from this placement alone. Analysts suggest that even losing exclusivity—without other penalties—could have serious implications for Google’s revenue. The U.S. Department of Justice has proposed remedies including banning such default search agreements.
AI Search Competition Ramps Up
Despite being seen as lagging after ChatGPT’s rise, Google is now aggressively advancing its AI initiatives. It has launched AI Overviews, integrated Gemini AI, and expanded generative summaries in over 100 countries. ChatGPT, a competing tool, now sees over 1 billion weekly search queries.
With Apple considering multiple AI search providers, the era of default engines may be fading, ushering in a new competitive model for online discovery.
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