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A quiet but potentially seismic change is brewing in the world of internet search. Apple is reportedly preparing to integrate AI-powered search options into its Safari browser, posing a serious threat to Google’s dominance in online search and advertising, which heavily relies on being the default search engine on iPhones.
Apple’s Shift Toward AI-Driven Search
According to Reuters, Apple executive Eddy Cue testified during a U.S. antitrust case that Apple is “actively looking at” reshaping its Safari browser to include new AI search alternatives. This marks a bold move away from its long-standing default search arrangement with Google.
Cue revealed that searches on Safari fell for the first time last month, as more users turned to AI platforms for information. This behavior signals a significant shift in how people search online — a development with potentially massive implications for Google.
Wall Street Reacts: Alphabet Loses $150 Billion
The market responded swiftly. Alphabet, Google’s parent company, saw its stock plunge 7.3%, erasing roughly $150 billion in market value. Apple’s own shares slipped 1.1%, indicating investor caution around both the disruption and opportunity AI brings.
Industry analysts are calling this moment a turning point in the search engine landscape. “The loss of exclusivity at Apple should have very severe consequences for Google,” said Gil Luria, an analyst at DA Davidson. He added that Google’s dominance has made it the sole recipient of many advertisers’ budgets — a position now at risk.
Google’s Lucrative Deal with Apple Under Threat
Google currently pays Apple around $20 billion per year to remain the default search engine on Safari, which analysts estimate accounts for about 36% of Google’s mobile search ad revenue.
If Apple opens Safari to AI search engines like OpenAI’s ChatGPT or Perplexity AI, Google’s dominance could unravel quickly — not through direct competition, but by changing how users search and who they trust for information.
Google Pushes Back with AI Innovation
While Apple explores alternative search providers, Google is not standing still. It has doubled down on its own AI initiatives, launching features like AI Overviews — summaries that appear atop standard search results — and introducing a new AI mode in its search interface earlier this year.
Meta Wins $168M Verdict Against Spyware Maker NSO Group
The company has also expanded AI Overviews to over 100 countries and monetized it with advertisements, bolstering search ad revenue. CEO Sundar Pichai testified recently that Google is in talks with Apple to include its Gemini AI on future iPhones, showing that the two tech giants are still open to collaboration — for now.
Apple Eyes ChatGPT, Perplexity as Future Partners
Apple’s Eddy Cue reportedly stated that the company plans to integrate OpenAI and Perplexity AI as future search providers in Safari. This could give iPhone users choice over how they search — and potentially move them away from Google.
This development also underscores how far generative search engines have evolved. “It shows how far ChatGPT and Perplexity have come,” said Yory Wurmser, a principal analyst at eMarketer. He noted that ChatGPT reported over 1 billion weekly web searches in April and had 400 million weekly active users as of February — numbers that rival traditional search engines.
Antitrust and the Future of Search
The timing of these developments is especially critical for Google, as it faces two antitrust lawsuits from the U.S. government. Among the proposed remedies: banning Google from paying companies like Apple to remain the default search provider — a move that could redefine the economics of online advertising.
“Many advertisers could shift their budgets away from Google if viable alternatives exist,” said Luria. And with Apple planning to integrate multiple AI search tools, such alternatives may soon be just a tap away for billions of users.
