Apple Explores AI Search Integration in Safari, Challenging Google's Dominance

Cue: Apple will add AI search in mobile Safari, challenging Google

Apple executive Eddie Cue said that Apple is "actively looking at" shifting the focus of mobile Safari's search experience to AI search engines, potentially challenging Google's longstanding search dominance and the two companies' lucrative default search engine deal. The statements were made while Cue testified for the US Department of Justice in the Alphabet/Google antitrust trial, as first reported in Bloomberg. Cue noted that searches in Safari fell for the first time ever last year, and attributed the shift to users increasingly using large language model-based solutions to perform their searches. "Prior to AI, my feeling around this was, none of the others were valid choices," Cue said of the deal Apple had with Google, which is a key component in the DOJ's case against Alphabet. He added: "I think today there is much greater potential because there are new entrants attacking the problem in a different way." Here he was alluding to companies like Perplexity, which seek to offer an alternative to semantic search engines with a chat-like approach -- as well as others like OpenAI. Cue said Apple has had talks with Perplexity already. Speaking of AI-based search engines in general, he said "we will add them to the list" -- referring to the default search engine selector in Safari settings. That said, "they probably won't be the default" because they still need to improve, particularly when it comes to indexing. The enormous amount of money Google pays Apple (estimated at $20 billion per year) to remain the default may be a factor as well. Both Google and Apple shares dropped in the market after Cue's comments as investors fear that this may be the first sign that the deal will not last. Apple currently allows users to pick a default search engine from a list in the Settings app on their phones. Current choices include Google, Yahoo, Bing, DuckDuckGo, and Ecosia, with Google as the default. Apple also includes an AI chatbot extension on the latest version of iOS, which currently uses just OpenAI's ChatGPT. The iPhone maker plans to give users the option to pick alternatives like Google's Gemini later. But Cue's testimony revolved around the choice of which search engine will be used when the user types a query into Safari's address bar. AI search tools have significant pros and cons versus semantic search engines. On the plus side, new deep research and agentic features allow them to respond to a natural language query (like "I saw a movie that started with a teen lip-syncing in her bedroom, and it had a girl dressed as Thor stuck on a skyscraper") with a robust approach involving multiple searches before delivering a result, which is usually accurate or at least helpful. On the other hand, they may sometimes hallucinate incorrect answers when prompted in areas that are knowledge and training blind spots, as is infamously the situation with Google's (admittedly much less sophisticated) AI search summaries.

Apple is looking to add AI search engines to Safari | TechCrunch

Apple is looking at adding AI search engines from OpenAI, Perplexity, and Anthropic into Safari, Bloomberg reported on Wednesday. Eddy Cue, Apple's Senior Vice President of Services, made the statement during his testimony in the U.S. Justice Department's lawsuit against Alphabet. Cue's disclosure was part of his testimony regarding Apple and Google's estimated $20 billion-a-year deal that makes Google the default search engine on Safari. He noted that searches on Safari declined for the first time last month, a change that he attributes to the increased use of AI. Cue also stated that he believes AI search providers will end up replacing traditional search engines like Google, which is why Apple actively looking at adding these services into its browser. However, Cue noted that these services probably won't be the default, as he believes that they still need to improve. Apple has already had some discussions with Perplexity, Cue said.

Apple Looking to Transform Safari With AI Search

Imad is a senior reporter covering Google and internet culture. Hailing from Texas, Imad started his journalism career in 2013 and has amassed bylines with The New York Times, The Washington Post, ESPN, Tom's Guide and Wired, among others. Apple is looking to integrate AI-powered search into its Safari web browser on desktop and mobile in what could be a major blow to Google, according to a report from Bloomberg on Wednesday. In testimony provided to the US Department of Justice in its lawsuit against Google, Eddy Cue, Apple's senior vice president of services, said that the iPhone maker is "actively looking at" remaking Safari with the addition of AI search tools, likely with options including those from OpenAI, Perplexity and Anthropic. Cue noted that online searches dropped on Safari for the first time last month. Currently, Google is the default search platform on Safari and Apple devices. The Justice Department case earlier revealed that Google pays $18 billion a year to Apple to maintain its default online search position. As generative AI changes how consumers gather information thanks to its ability to quickly synthesize data from multiple sources in seconds, it's making Google's blue links seem antiquated. Apple has already integrated OpenAI's ChatGPT into its Siri assistant. Google CEO Sundar Pichai has said that Google's Gemini will be coming to Siri later this year. OpenAI declined to comment. Neither Apple, Google, Perplexity nor Anthropic immediately responded to requests for comment. Apple and Google have a history of making deals behind the scenes to ensure that neither encroaches on each other's territory, a factor in the DOJ's antitrust lawsuits, as in the case of their search arrangement. Google has also struck a similar deal with Galaxy phone maker Samsung. This arrangement brought in a healthy stream of revenue for Apple and gave Google access to Apple's valuable customer base, from which it could extract data and against which it could sell advertising and e-commerce pitches. At one point, almost half of Google's search traffic came from Apple devices.

Apple is looking at adding Perplexity and other AI search engines to Safari

Apple is "actively looking at" bringing AI search options to Safari. Eddy Cue, Apple's senior vice president of services, made the statement during Google's antitrust trial on Wednesday, saying the company will likely add AI search features to Safari in the coming year as they continue to improve. "To date, they're just not good enough," Cue said, adding that Apple has already had discussions with Perplexity, OpenAI, and Anthropic. Cue is mindful that it's still early days for generative AI, and says that with Apple's existing agreement with OpenAI for other AI services, it was important to "make sure we have the capability to switch if we have to," in case a different provider leaps ahead. The statements came as part of Cue's testimony about the around $20 billion Google pays Apple to make it the default search engine on Safari. Apple currently offers a ChatGPT integration with Siri, and Google CEO Sundar Pichai confirmed last week that the company is getting closer to striking a deal to bring Gemini to the iPhone. Cue added that searches in Safari fell for the first time last month, something that has "never happened in 22 years." Under Google's deal with Apple, the search giant pays Apple a chunk of ad revenue from searches on Safari. Fewer searches mean less revenue for Apple, something he has said he's "lost a lot of sleep thinking about."

Google searches are falling in Safari for the first time ever -- probably because of AI

Google searches fell in Safari for the first time ever last month, Apple's senior vice president of services, Eddy Cue, said during Google's antitrust trial on Wednesday. "That has never happened in 22 years," Cue added. Cue linked the dip in searches to the growing use of AI, which the company is now considering putting into Safari. The rise of web search in AI tools like ChatGPT, Perplexity, Gemini, and Microsoft Copilot may make users less inclined to visit Google as their primary way of finding information. Google currently pays Apple around $20 billion to make its search engine the default in Safari, and a decrease in searches could mean less money for Apple. "I've lost a lot of sleep thinking about it," Cue said, when considering what Apple would do without revenue from Google Search. As Google and other companies continue to embrace AI, traffic to websites that would normally receive clicks from search results is falling, dealing a huge blow to some businesses. In response to concerns from independent site owners, Google Search vice president Pandu Nayak said he can't offer "any guarantees" that things will turn around. The Verge reached out to Google with a request for comment but didn't immediately hear back.

Apple Explores AI Search for Safari as Google Deal Faces Legal Scrutiny

Apple is exploring adding AI search engines to its Safari browser and has already held discussions with some popular AI companies, says Eddy Cue, the company's SVP of services. As The Verge reports, Cue made the disclosure while testifying in court for the ongoing Google monopoly trial. The case, which is in its remedial phase, has found Google guilty of monopolistic practices, such as paying Apple $20 billion a year to be the default search engine on Safari. As the lucrative deal heads toward its potential end, Apple has started looking at AI alternatives, and the company has held discussions with Perplexity, OpenAI, and Anthropic. "Prior to AI, my feeling around this was, none of the others [search options] were valid choices," Cue said. "I think today there is much greater potential because there are new entrants attacking the problem in a different way." However, Cue emphasized that AI providers need to continue improving their products, and that Apple would be keeping its options open. "We will add them to the list -- they probably won't be the default," he said, adding that Apple will "make sure we have the capability to switch if we have to." Cue also added that last month, searches on Safari dropped for the first time in 22 years (probably due to the rise of generative AI tools like ChatGPT and Gemini). Google has since disputed that claim. A statement from Google said, "We continue to see overall query growth in Search. That includes an increase in total queries coming from Apple's devices and platforms." Another interesting remark Cue made during the testimony was regarding the future of the iPhone. "We're not an oil company, we're not toothpaste -- these are things that are going to last forever ... you may not need an iPhone 10 years from now," he said, while discussing how AI could transform the tech industry at large.

Apple Working to Move to AI Search in Browser Amid Google Fallout

Apple Inc. is "actively looking at" reshaping the Safari web browser on its devices to focus on AI-powered search engines in light of the potential fallout of its deal with Google and broader industry shifts. Eddy Cue, Apple's senior vice president of services, made the disclosure Wednesday during his testimony in the US Justice Department's lawsuit against Alphabet Inc. The heart of the dispute is Apple and Google's estimated $20 billion-a-year deal that makes Google the default offering for queries in Apple's included browser.

Google shares slump as Apple exec calls AI the new search

Eddy Cue tells DC court Safari will incorporate Anthropic, OpenAI and co An Apple executive's backhanded endorsement of AI as a replacement for traditional internet searches has sent Google stock tumbling. Apple senior vice president of services Eddy Cue made a number of interesting statements about the future of AI, and its potential impact on Google's bottom line, during testimony Wednesday in the remedies phase of the US Department of Justice's lawsuit against Google parent Alphabet. That's the lawsuit that resulted in a judge ruling that Google's payments to make its search engine the default for smartphone browsers and elsewhere broke American antitrust law. Alphabet shareholders were shaken by Cue's statements, as reported by Bloomberg, that he saw AI likely replacing traditional search engines like Google in coming years. As part of that expectation, Cue also noted that Apple intended to make changes to Safari to place AI-driven search alongside traditional web search, with tools from OpenAI, Perplexity, and Anthropic all likely to be added to Safari as search options in future updates. "We will add them to the list - they probably won't be the default," Cue reportedly said in his testimony - they being the AI upstarts - adding that he didn't believe anyone was able to compete with Google as a default search service prior to the AI age. Cue also attributed a first-time drop in Safari searches to AI's growing influence as a search engine alternative. Along with his contention that Google's days as the de facto king of search were short, Cue also revealed that Google had competed with OpenAI for a place in Apple Intelligence, the AI features Apple introduced in iOS 18 that have been less than successful for the company. Google's terms for its inclusion over ChatGPT reportedly included "a lot of things Apple wouldn't agree to and didn't agree to with OpenAI," Cue said. ChatGPT is now available as an option for Siri searches. Cue still noted that AI firms needed to improve their search indexes if they truly want to beat Google at its own game, but he noted that he expected it to happen eventually, whether Google liked it or not. Shares of Alphabet dropped considerably following Cue's testimony, and closed down more than 7 percent for the day. Google is not exactly ignoring AI search - AI overviews are now front-and-center of Google search result pages, and Google even offers an experimental all-AI search experience as well - but the threat of Google's unchallenged search dominance ending was enough to spook investors. Cue's testimony came as part of the lawsuit that found Google guilty of monopolizing web search on mobile devices last year, with Apple and its multi-billion dollar deal with Google to make it the default search engine on iPhones being a large part of the case. In one sense, Cue's Wednesday testimony actually helped Google, suggesting that strict antitrust remedies aren't necessary because Google's dominance will eventually be undercut by technological evolution. The guilty verdict came down last year, and now Washington, DC District Court judge Amit Mehta is overseeing a trial to determine what penalty to impose on the Chocolate Factory. The DoJ - both Biden's and Trump's - have asked Mehta to force Google to divest Chrome and bar it from paying to be a default search engine on mobile devices. Mehta's decision on Google's future is expected to be issued by August. Neither Google nor Apple responded to questions for this story. ®

Apple's Wandering Eye Is Good for Everyone But Google

In technology, disruption can happen slowly and then all at once. Alphabet Inc.'s Google unit is praying for the former right now. Executives at the company have been racing to stave off a decline to its bread-and-butter search business ever since ChatGPT exploded onto the scene in late 2022. Now Apple Inc., one of Google's most important partners in that business, has confirmed the search giant's efforts aren't working. The company is "actively looking at" revamping the Safari web browser on iPhones and other devices so that instead of offering Google by default, they'll potentially show other AI tools from firms like OpenAI, Perplexity AI Inc. and Anthropic PBC.

Apple Eyes Move to AI Search, Ending Era Defined by Google

Apple Inc. is "actively looking at" revamping the Safari web browser on its devices to focus on AI-powered search engines, a seismic shift for the industry hastened by the potential end of a longtime partnership with Google. Eddy Cue, Apple's senior vice president of services, made the disclosure Wednesday during his testimony in the US Justice Department's lawsuit against Alphabet Inc. The heart of the dispute is the two companies' estimated $20 billion-a-year deal that makes Google the default offering for queries in Apple's browser. The case could force the tech giants to unwind the pact, upending how the iPhone and other devices have long operated. MoffettNathanson co-founder Michael Nathanson explains how this change could signal the beginning of the end for the dominance of Google's search engine, which has long been the industry standard for Internet-based queries. Michael speaks with Tom Keene and Paul Sweeney on Bloomberg. (Source: Bloomberg)

Alphabet shares plunge as Apple seeks AI alternatives to Google search

Shares in Google's parent Alphabet fell by as much as 9 per cent on Wednesday after a top Apple executive said the iPhone maker was "looking at" introducing alternative search engines for its web browser powered by artificial intelligence. Eddy Cue, Apple's senior vice-president of services, told a US court that the company was talking to AI start-ups such as Perplexity about offering their search tools as an alternative to Google. Cue said that Apple planned to "add them to the list" of tools that iPhone and iPad owners can choose to set as their preferred option to search the web through its Safari browser, without giving a timeframe for the potential move. Apple was also considering adding AI services from China's DeepSeek to the iPhone, he said, among other options. A shift to new search providers would threaten Alphabet's multibillion-dollar relationship with Apple, under which Google is the default search engine for iPhones and the Safari browsers. The deal brings Google hundreds of millions of users and boosts its advertising business. Shares in Alphabet were down nearly 8 per cent in early-afternoon trading in New York, while Apple fell by almost 2 per cent. The share price falls came after Bloomberg earlier reported Cue's comments. Cue was testifying as part of a hearing to determine antitrust remedies after the US Department of Justice's legal victory against Google last year. A federal judge ruled last August that Google maintained an illegal monopoly in search through deals with wireless carriers, browser developers and device manufacturers. Apple stands to take a multibillion-dollar hit to its profits if its deal with Google is unwound as a result of the ruling. Google pays as much as $20bn a year to Apple to be its default search engine. The long-standing deal between the two Silicon Valley companies was central to the US government's case. Apple has introduced several new generative AI tools to the iPhone over the past year, including access to OpenAI's ChatGPT through its Siri assistant. However, other features, including a broader upgrade to Siri, have been delayed, fuelling fears among some investors that Apple is falling behind rivals such as Google, Amazon and Microsoft in the generative AI race. AI tools offer users complete written answers to search queries, backed up by supporting links, rather than Google's traditional list of web pages. Google has also upgraded its search engine to incorporate results using generative AI. In Wednesday's testimony, Cue said that AI had opened the door to serious competition to Google in search for the first time and that Apple had discussed adding various AI features to the iPhone from a range of new providers, including Perplexity, Anthropic, China's DeepSeek and Elon Musk's xAI.

Apple looks to add AI search to company's browser, Bloomberg reports

May 7 (Reuters) - Apple (AAPL.O), opens new tab is "actively looking at" reshaping the Safari web browser on its devices to focus on AI-powered search engines, Bloomberg News reported on Wednesday, a move that could chip away at Google's dominance in the lucrative search market. Apple executive Eddy Cue testified in the U.S. Justice Department's antitrust case against Alphabet, saying searches on Safari fell for the first time last month, which he attributed to users increasingly turning to AI, the report said. Google is the default search engine on Apple's browser, a coveted position for which it pays Apple roughly $20 billion annually, or about 36% of its search advertising revenue generated through the Safari browser, analysts have estimated. Losing that position could deepen pressure on the company at a time it is already facing tough competition from AI startups such as ChatGPT-maker OpenAI and Perplexity. Apple has already tied up with OpenAI to offer ChatGPT as an option in Siri. Alphabet shares fell 6%, while Apple was down about 2%. Both companies did not respond to Reuters' requests for comment. Cue said he believes AI search providers, including OpenAI and Perplexity AI, will eventually replace standard search engines such as Google, and that Apple will add those players as options in Safari in the future, according to the report. "We will add them to the list - they probably won't be the default," Bloomberg News cited Cue as saying. Reporting by Arsheeya Bajwa in Bengaluru; Editing by Leroy Leo and Anil D'Silva Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

Alphabet shares sink after Apple's Cue says AI will replace search engines

Eddy Cue, senior vice president of internet software and services at Apple Inc., speaks during a keynote session at the South By Southwest (SXSW) conference in Austin, Texas, U.S., on Monday, March 12, 2018. Alphabet and Apple shares sunk Wednesday after Eddy Cue, Apple's services chief, said he believes that AI search engines will eventually replace standard search engines like Google, according to Bloomberg. Cue said he expects to add the artificial intelligence services from OpenAI, Perplexity and Anthropic as search options in Apple's Safari browser in the future, according to the report. The Apple executive was testifying in a federal court in Washington as part of the Justice Department's lawsuit against Alphabet. Last year, a U.S. District Court judge ruled that Google had illegally dominated ad-tech markets, and now the judge is looking to determine what penalties or actions should be taken against the search company. One major focus on the case is Google's practice of paying platform providers like Apple to become the default search engine. The lawsuit and any potential remedies threaten Google's lucrative advertising business, and Alphabet shares sunk more than 7% in trading on Wednesday. But the lawsuit also threatens to ensnare Apple. Google pays the iPhone maker billions of dollars per year -- as much as $20 billion per year back in 2022, according to testimony in the trial -- to be the default search engine on iPhones. It's lucrative for Apple and a valuable way for Google to get more search volume and users. Apple shares fell 2% during trading on Wednesday. Cue's comments cast doubt on the long-term stability of the relationship. Cue said he believes Google should remain the default search option on Safari, saying he has lost sleep over the possibility of losing the revenue share from the two companies' agreement, according to the report. The Apple executive said that searches on Safari declined for the first time in April, which Cue attributed to the rise of people using AI, according to the report.

Apple is considering adding AI search engines to Safari

AI services like Perplexity or OpenAI's SearchGPT could be search engine options in a future version of Safari, Bloomberg reports. The tentative plans were shared by Eddy Cue, Apple's senior vice president of services, while on the stand for Google's ongoing search antitrust case. Cue was called to testify because of the deal Google and Apple have to keep Google Search as the default search engine on the iPhone. Cue claims Apple has discussed a possible Safari-integration with Perplexity, but didn't share any definitive plans during his testimony. It's clear that he believes AI assistants will inevitably supplant traditional search engines, though. "Prior to AI, my feeling around this was, none of the others were valid choices," Cue said. "I think today there is much greater potential because there are new entrants attacking the problem in a different way." Whatever AI search Apple ultimately adds likely won't be the default at first, according to Cue, but "there's enough money now, enough large players, that I don't see how it doesn't happen." There's some evidence to back up the idea that things are changing, too. According to The Verge, Cue shared that the number of Google searches in Safari fell for the first time last month, something "that has never happened in 22 years." It's entirely possible those missing searches went to ChatGPT or Gemini. Google pays Apple $18 billion or more a year to keep Google Search as the default, possibly on top of other financial incentives. Cue's threading a very fine needle acknowledging the popularity of AI without suggesting that Google's deals have gotten in the way of other search options growing. Clearly, both companies would like their mutually beneficial relationship to stay the same. Of course, Apple's also had its own public issues with AI in the last few months. After presenting big plans for how Apple Intelligence would work in 2024, Apple had to delay its updated Siri, the centerpiece of its pitch, until later this year. The company ultimately made the decision to work with third-party AI models because its systems weren't up to snuff. That change could be how conversations about adding AI search engines to Safari came about in the first place.

Apple's Eddy Cue: AI search is coming to Safari, Google queries are falling, and the iPhone may be obsolete in 10 years

Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. What just happened? Apple's Eddy Cue testified in court yesterday in the remedies phase of the DoJ's lawsuit against Google parent Alphabet, and he had a lot to say. Cupertino's SVP of services said people "may not need an iPhone 10 years from now," AI could replace traditional search engines, and Apple expects to introduce AI services to Safari in the future. He also said search query volumes on Safari, which uses Google as the default search engine, declined last month, a claim that Google has denied. Cue was asked about the effect AI is having on search engine companies like Google and how businesses are struggling to adjust. "People still are going to need toothpaste 20 years from now, 40 years from now. You may not need an iPhone 10 years from now. As crazy as that sounds," he said. "You have to earn it. You have to develop. And so what we've seen always happen is the only way that you truly have real competition is when there's technology shifts." Cue is talking about phones, not just iPhones, being replaced by something else in a decade as new technologies arrive. "Technology shifts create these opportunities," he continued. "AI is a new technology shift, and it's creating new opportunities for new entrants." Cue talked about how Apple exemplified a company not becoming complacent when it essentially made its once-hit product, the iPod, obsolete. "We killed the iPod ourselves with the iPhone. Most companies have a very difficult time killing themselves when new technology comes along because you're afraid, why would you kill the golden goose, in a sense. And so, what I see generally is new technologies come about, new companies get formed, the incumbents have a hard time with it." Cue also revealed during his hour-long testimony that Apple has been in discussions with OpenAI, Perplexity and Anthropic about adding AI search engines to Safari. He believes AI search providers will eventually replace traditional search engines like Google, hence Apple looking at these services now. Cue did note, however, that the AI services won't be default options for Safari as they still need to improve. He added that nobody had been able to compete with Google as the default search engine before the AI revolution. Cue's final revelation was that search query volumes on Apple devices declined for the first time in over 20 years last month. He blames this on more people using AI tools such as ChatGPT. Google released a statement this morning responding to Cue's claim. The company says it continues to see an increase in overall query growth, which includes an increase in total queries coming from Apple's devices and platforms. "More generally, as we enhance Search with new features, people are seeing that Google Search is more useful for more of their queries - and they're accessing it for new things and in new ways, whether from browsers or the Google app, using their voice or Google Lens." The US District Court last year ruled that Google had illegally exploited its dominance in the search engine market. Apple's multi-billion dollar deal with Google to make it the default search engine on iPhones is part of the case. The current trial will determine what penalties Google receives. The DoJ wants Google to sell Chrome, which OpenAI has declared an interest in buying.

Apple's Stock Price Falls After Exec Says It Is Considering Injecting Safari With AI

Eddy Cue said the number of Google searches in Safari fell for the first time ever this year. On Wednesday, Apple’s senior vice president of services, Eddy Cue, said that the company is “actively looking at†bringing AI search options to its Safari web browser. Cue also said he believes that AI search engines will eventually replace standard search engines like Google. Cue’s comments came as he testified in the remedies phase of Google’s antitrust trial in Washington. The Apple executive also shared that the number of Google searches made on Safari decreased for the first time ever this year. He attributed the change to the rise of AI search engines. “That has never happened in 22 years,†he emphasized. (Safari was released in early 2003.) While Cue says that AI search technology isn’t ready to be rolled out on Safari (“To date, they’re just not good enoughâ€), he did say that the company has already had conversations with OpenAI, Perplexity, and Anthropic. Last August, Apple announced a partnership with OpenAI to bring ChatGPT to some of its products, but Cue says he wanted to “make sure we have the capability to switch if we have to,†in case another company distinguishes itself as a leader in AI search. Share prices of both Alphabet and Apple fellâ€"Alphabet’s by around 8% and Apple’s by around 2%â€"after Bloomberg reported on Cue’s testimony. Executives from a range of tech companiesâ€"including Yahoo, Microsoft, and OpenAIâ€"are expected to testify during the remedies phase of this trial, which kicked off last month. Apple’s testimony is particularly relevant to Google’s fate because the search company pays Apple around $20 billion a year to be the default search engine on Safari. Under this agreement with Google, Apple receives a portion of Google’s ad revenue from searches on Safari. During his testimony on Wednesday, Cue said he’s “lost a lot of sleep†over the idea of losing the revenue share. Google is currently the defendant in two separate antitrust suits filed by the Department of Justice. Today’s testimony was part of the trial that emerged from the Justice Department’s 2020 lawsuit against Google. That suit alleges that Google illegally maintained a monopoly on search and search advertising markets. A central argument in the DOJ’s case was that the exclusivity agreements Google struck with certain platform providers (like Apple) to become the default browser on their tools were illegally monopolistic. Last August, Judge Amit P. Mehta of the US District Court of the District of Washington, DC, ruled against Google in the trial. While Google has said it plans to appeal the verdict, that action will have to wait until the remedies phase of the trial is complete. Separately, a 2023 suit filed by the DOJ against Google argues that the search giant illegally monopolized the digital ad tech market. Last month, Google was found guilty of two of the three charges brought against it. Google also plans to appeal this ruling.

Apple to add AI search partners to Safari as Google usage falls - 9to5Mac

Apple is going to add AI search providers to the Safari browser on iPhone, iPad, and Mac. Bloomberg reports Apple SVP Eddy Cue made the disclosure in court testimony today, stating "we will add them to the list -- they probably won't be the default" in reference to providers like Perplexity and Anthropic. Cue also revealed that the number of searches through Safari fell for the first time ever in April, suggesting users are looking to AI sources as alternative ways to find information. Through its lucrative deal with Google and other search engines, Apple gets a cut of ad revenue from searches, so if usage falls, Apple makes less money. The default search engine deal is also under threat at the moment from an ongoing regulatory Google monopoly case. Apple currently rakes in about $20 billion annually from its share of revenue from Google searches made from Safari on Apple devices. Amusingly, Cue's testimony today comes as part of evidence for the Alphabet monopoly case that could see its current Apple search deal -- which sees Google as the default search option across Apple's devices -- torn up. Apple is increasingly reliant on third-party companies for key artificial intelligence functionality in its devices. We've already seen Apple partner with ChatGPT to extend Siri capabilities as part of the first wave of Apple Intelligence features. Under that deal, OpenAI is believed to be offering access to ChatGPT to Apple for free in exchange for prominent exposure, with potential to convert users to paid members. But for placement in Safari, it seems like Apple would want to strike revenue-sharing deals equivalent to what it currently makes from Google. However, Cue also said he wants the AI providers to improve and be more competitive to Google in general queries, with richer search indexes.

Apple Working to Add AI Search Options to Safari

Apple is looking at reworking Safari to directly support AI-powered search services, Bloomberg's Mark Gurman reports. Apple's senior vice president of services Eddy Cue today disclosed that Apple is "actively looking at" reshaping Safari around AI search as part of testimony in the lawsuit against Google from the U.S. Justice Department. The dispute centers on the $20 billion deal between Apple and Google that makes the latter the default search engine on Apple devices. Cue said that searches on Safari dipped for the first time in April 2025 -- a change which he attributed to users switching to AI services. He added that he believes AI services such as ChatGPT, Perplexity, and Claude will eventually replace conventional search engines like Google. As a result, Apple will need to add them as options in Safari in the future. Cue said the company had already held discussions with Perplexity. The AI options "probably won't be the default," Cue explained, but they will be added "to the list" of options. He said the services still need to improve further. He added: You may not need an iPhone 10 years from now as crazy as it sounds. The only way you truly have true competition is when you have technology shifts. Technology shifts create these opportunities. AI is a new technology shift, and it's creating new opportunities for new entrants. He said that AI services need to improve their search indexes, but, even if this does not happen quickly, users are still likely to switch rapidly because they have other compelling features that are "so much better." Large language models will continue to improve over time, giving users more reason to switch from traditional search to AI. "There's enough money now, enough large players, that I don't see how it doesn't happen," he said. Nevertheless, Cue said he believes that Google should remain the default search option in Safari. He added that he lost sleep over the possibility of Apple losing the revenue share from the agreement between the two companies. The deal now includes Google Lens integration in Visual Intelligence.

ChatGPT might be coming to Safari -- here's why Google should be worried

Apple is exploring the idea of bringing an AI tool like Perplexity to Safari -- a potential shake-up to the decades-long dominance of Google in the search space. Google is currently the top search engine with 4.9 billion users. The news emerged during testimony in the U.S. Department of Justice's ongoing antitrust trial against Google. Eddy Cue, Apple's senior vice president of services, revealed to Bloomberg that the company is seriously considering letting users select from a wider range of AI search engines in future versions of Safari. Google currently pays Apple an estimated $20 billion per year to remain the default search engine on Apple devices. If Apple begins giving users more AI-driven options -- even as secondary choices -- it could signal a significant shift in how we access information online and search revenue flows in the tech industry. Cue also noted that Safari search traffic declined for the first time in April 2025, attributing the drop to users increasingly turning to AI platforms like ChatGPT to answer questions and find information. What AI search engines could be included? While no official timeline has been announced, Apple is reportedly looking into: Adding these tools into Safari wouldn't necessarily replace Google as the default (at least not yet), but it would allow users to access these conversational AI engines directly from the browser interface. Apple has remained relatively quiet in the AI arms race, but this move suggests it's paying close attention to how generative AI is changing user behavior. With its own new Apple Intelligence features expected to debut at WWDC 2025, this may be just the beginning of a much bigger shift in how Apple incorporates AI across its ecosystem. For now, Google Search is still the default, but the way you search from your iPhone might look very different in the near future. What are your thoughts on using AI within Safari? Let me know in the comments.

It sure looks like AI-powered search is coming to Safari

Soon, you may be able to choose AI-based search engines in Apple's browser, but it won't be the default. AI-based search options may be coming to Safari across Apple's platforms. At least, that's what Eddy Cue, Apple's senior VP of services, testified in the Justice Department's lawsuit against Alphabet Inc. The lawsuit is over Google's monopoly over search and whether it broke antitrust law. One of the ways it was said to have done this is by paying Apple to maintain its position as the default search engine in Safari (realistically, the only web browser for over a billion iPhone users). Last year, the court found Google to be acting as a monopolist, claiming it "has acted as one to maintain its monopoly. It has violated Section 2 of the Sherman Act." Now, Google is in court again to discuss exactly what the remedy should be -- will Alphabet/Google's properties be broken apart? If so, how? In his court appearance, Eddy Cue remarked on the Safari search deal with Google and where things are headed, according to a report from Bloomberg. Cue said Apple is "actively looking at" changing the way search works in Safari to focus on AI-powered search engines. Searches actually dipped on Safari last month for the first time, he said, which he attributed to people getting their answers from AI. Cue said he believes AI-based search products like those from Perplexity, Anthropic, and OpenAI will eventually replace the standard search one gets from Google. He expects to add those as search providers to Safari in the future, adding, "We will add them to the list -- they probably won't be the default." Cue said the products still need to improve before that happens, however. He said making Google the default search was a natural choice because the other search engines were valid choices. "I think today there is much greater potential because there are new entrants attacking the problem in a different way," he added. Meanwhile, Google is moving ahead rapidly to incorporate AI into its search results and will soon debut a new "AI mode" for its search. In general, it seems that the public dislikes AI stuff inserted into search results, and the only feedback we see is that "Google is ruining search" and that more people just get answers to things they need from social media, instead. Google had a chance to be the AI partner for Apple Intelligence in iOS 18, instead of OpenAI's ChatGPT. There was a "bake-off" between the two, but Google's term sheet, he says, "had a lot of things Apple wouldn't agree to and didn't agree to with OpenAI." Google is widely rumored to become an option for extended AI features in iOS 19, providing users with a choice between ChatGPT, Gemini, and perhaps others. The following paragraph of Bloomberg's story is illuminating: Still, [Cue] believes Google should remain the default in Safari, saying that he has lost sleep over the possibility of losing the revenue share from their agreement. He said Apple's agreement with Google today on regular search still has the best financial terms. This description of the proceedings makes it sound like Cue believes AI search, while not good enough right now, is the future and will soon be better for most users. But the billions of dollars Google pays to be the default is too good to give up.

Apple might kick Google Search off of Safari: report

Apple sees the AI as possibly more appealing to users for search purposes Apple is flirting with the idea of making AI tools the default search option for Safari instead of Google. As first reported by Bloomberg, Apple's services chief Eddy Cue revealed during testimony this week in the U.S. Department of Justice's antitrust trial against Google that Apple is "actively looking at" bringing AI-powered search engines as a Google replacement. Apple and Google currently have a mutually beneficial and lucrative deal where Google pays Apple around $20 billion a year to remain the default search engine across all Apple devices. That deal was part of the antitrust scrutiny, which led to the revelation of Apple's interest in alternatives. Eddy Cue mentioned several major AI chatbot developers as potential new search partners for Apple, including OpenAI, Perplexity, Anthropic, and xAI. Cue told the court that searches on Safari actually declined last month for the first time in recent memory, and his theory is that people are starting to swap out standard search engines for AI tools. Instead of typing in "how does Wi-Fi work?" into a search bar, users are asking ChatGPT to explain it like they're five. Cue wasn't exactly subtle in hinting that Apple thinks traditional search might be on the way out. "The only way you truly have true competition is when you have technology shifts," he said. "AI is a new technology shift, and it's creating new opportunities for new entrants." Apple's already dipped its toes into AI search, linking Siri to ChatGPT and supposedly planning to do the same with Google Gemini. Cue also noted that Apple's open to adding multiple AI search options directly into Safari, though no decision about a new default was mentioned. AI search tools have some good points, but they come with glaring weaknesses. In particular, they can respond with incomplete, inaccurate, or downright hallucinatory information. Whether those issues are worth the advantages of AI search tools is debatable, but Apple clearly thinks it might be a worthwhile change to make. After all, if people are okay switching from Google to AI tools because they're easier, and despite their errors, that's the direction any company would want to follow. And there's a reason Google has been willing to pay so much for its status on Apple devices. That user base is crucial to its search dominance. Just hinting that it might not be the case forever sent Google's stock dropping nearly 9% after Cue's testimony. Apple shares slipped too, but much more modestly. None of this may matter if Apple decides it has a good thing with Google as a company and makes Gemini its default search tool with a similar deal. And while AI still can't quite be trusted to write a college essay or navigate the DMV website, it's already reshaping how we expect to interact with information. That means the tools we use to access that information are going to evolve in a way they haven't since perhaps the widespread adoption of mobile versions of websites.

Google's stock falls as Apple actively considers AI search for Safari

The U.S. Justice Department is suing Google (or Alphabet Inc., if you prefer), and in testimony today, Apple Senior Vice President of Services Eddy Cue dropped a bombshell in the courtroom: Apple is now "actively looking" at focusing its Safari web browser on AI search instead of Google Search. As Bloomberg reported, the revelation marks a "seismic shift for the industry." The default search tool used by a web browser with only 18% market share might not seem like a seismic announcement, but it's further proof that a massive shift is underway. And that shift threatens one of the foundations of the internet as we know it: Google Search. As of this writing, Alphabet stock is down 7.5 percent for the day, a sharp drop. Increasingly, some users are relying on AI chatbots like ChatGPT for their web searches. Just today, the AI company Anthropic announced a new API that would expand the search capabilities of its Claude AI models. ChatGPT-maker OpenAI has also been encroaching on Google Search's territory, first with the introduction of ChatGPT Search in October 2024 and more recently with new shopping features. Now, even Apple is signaling a shift toward AI search -- and away from Google. Due to the dominance of Apple iPhones, Apple's approach to search will have much wider impacts across the web. Apple also stands to lose significant revenue as a result of the Justice Department's lawsuit, which highlighted the payments Google makes to Apple to use Google as the default search engine on Safari. In his testimony, Cue seemed to defend the relationship, which nets Apple $20 billion a year. By highlighting the inevitable shift toward AI search, Cue suggested that Google's search monopoly is naturally coming to an end. The news isn't all bleak for Google, however. The company's Gemini AI model has surged to the top of some AI leaderboards, largely due to the truly mind-boggling amount of data Google has at its disposal. And Google itself is diving headfirst into AI search, first with the introduction of AI overviews, and then with the beta for AI Mode, a new chatbot-style search tool. If the trend wasn't clear before, it is now: the era of Google Search is ending, and the era of AI search is nigh.

Apple working on adding AI-powered search to Safari

Apple is thinking about making changes to Safari to work with AI-based search engines, as it considers what it can do if courts end the $20 billion default search deal with Google. Google is facing the prospect of making changes to its business, as a court tries to work out the best remedies it can take to conclude an antitrust lawsuit. For Apple, one of these options is for the court to end its deal worth $20 billion per year to keep Google as the default search on iPhone and in Safari. With the very real possibility of missing out in billions of dollars in revenue from Google, Apple is seemingly thinking about the next steps it can take with Safari and search. It apparently involves AI, the current popular concept in the tech industry. Apple SVP of Services Eddy Cue disclosed to the court on Wednesday that Apple is "actively looking" at changing search on Safari to use AI-based versions instead of Google, reports Bloomberg. During his testimony, Cue added that Safari searches were down for the first time in April, which he put down to people using AI for queries instead. Cue offered that AI search providers will probably replace traditional search engines like Google. He also thinks that Apple will add the AI-based versions, such as from Open AI, Perplexity AI, and Anthropic PBC, as search options within Safari. While they will be added, Cue adds that they probably won't be set as the default search, and that improvements are still needed from them all.

Apple wants to move to AI-powered search -- and Google stock sinks 8%

Eddy Cue, Apple's senior vice president of services, revealed that the company is "actively looking at" how to fold AI into its existing Safari browser, Bloomberg reports. The comments were made during Cue's testimony in the U.S. Justice Department's lawsuit against Alphabet Inc. on Wednesday. Inquiries into Safari had dropped for the first time in April, he said. This aligns with a wider shift in consumer behavior, whereby users are increasingly turning to large-language models for answers. Alphabet's share price fell 8% on Wednesday, following Cue's comments. Cue foresees the start-ups behind AI-generated search, like OpenAI, Perplexity AI Inc. and Anthropic PBC, inevitably usurping the traditional search tools, such as Google or Bing (MSFT). Currently, OpenAI's ChatGPT is offered as an option in Siri, and Apple is set to add Google's Gemini later this year. But Cue says this is just the start. He expects Apple to incorporate various AI engines into Safari in the future, offering users the chance to pick between them. "We will add them to the list -- they probably won't be the default," he said. Talks between Apple and Perplexity are already underway, he disclosed. "Prior to AI, my feeling around this was, none of the others were valid choices," he said. "I think today there is much greater potential because there are new entrants attacking the problem in a different way." Another reason for the revamp: Apple's relationship with Google is in jeopardy. The DOJ's lawsuit against Alphabet centers on an estimated $20 billion-a-year deal between Apple and Google. The partnership makes Google the default search engine in Safari, Apple's native browser. But Cue recognized that the companies behind AI-engines still have some way to go in developing their products. Specifically, their search indexes, which refers to a data structure that determines how effective engines are at retrieving relevant information. However, irrespective of teething issues, Cue asserted that the features offered by AI tools are just "so much better that people will switch." While an array of chatbots may soon be folded into Apple's products, Cue concluded that Google should remain the default search option. Apple's revenue share from their agreement remains the most financially appealing option, he said.

Apple switch to AI search could be a huge blow to Google

Apple is looking into using AI search as an integrated part of its Safari browser - something that could seriously damage the control Google currently holds over online searches. The news comes from a report posted by Bloomberg which says Apple is "actively looking at" reshaping the Safari browser. The idea is to focus on using AI-powered search engines. Recommended Videos Currently the Google search is Apple's default search engine, something which Google's Alphabet pays Apple $20 billion annually for the privilege of. That equates to about 36% of its search advertising revenue which it allegedly makes through that Safari browser traffic. So a move by Apple to depart from this Google deal could mean a big sudden loss for Google. Eddy Cue, Apple executive, said that searches on Safari fell for the first time last month. This is something he attributes to an increase in the use of AI as a primary point of search for those online. Cue went on to say that he thinks OpenAI and Perplexity AI will eventually replace standard search engines. According to the report he said that the likes of Google and Apple will add these AI search options into browsers like Safari in the future. Although he did specifically say: "We will add them to the list - they probably won't be the default." AI competition Currently Apple is reportedly in talks with Google to integrate its Gemini AI tech into the latest Apple devices - something expected to be revealed at the iPhone 17 launch at WWDC 2025 in June. Startups like OpenAI and Perplexity are adding competitive pressure to the likes of Google. Further to this, ChatGPT is reportedly going to be an option in Siri - based on an OpenAI and Apple deal. Talking about this move away from Google, D.A. Davidson analyst Gil Luria, said "Many advertisers have all of their search advertising with Google because it is practically a monopoly with almost 90% share. If there were other viable alternatives for search, many advertisers could move much of their ad budgets away from Google to these other venues."

Could AI replace Google in Safari? Apple executive suggests it's possible

Safari could be seeing a big change in the future. (Image credit: K303 / Shutterstock.com) Apple's AI efforts have been a stumbling block for the company. Last year, it made a big deal about its Apple Intelligence reveal, but seven months later, the feature has yet to be fully implemented. Couple that with the constantly delayed, overhauled Siri. Apple planned to make the assistant smarter with the help of AI. The rollout was such a debacle that the company shuffled team leaders in order to get the project completed this year. While AI might not be working out for Apple, one company executive says there will be a big AI shift coming. Eddy Cue, Apple's senior vice president of services, says the company is "actively looking at" using AI-powered search in its Safari web browser, according to a Bloomberg report. Cue said this while testifying in the antitrust trial in the U.S. Department of Justice's case against Google, which was found to have a monopoly and is in the process of determining what business should be broken off from the company. Cue pointed out that AI companies such as OpenAI, Perplexity, and Anthropic will eventually replace Google Search. "We will add them to the list -- they probably won't be the default," he said, according to Bloomberg. "Prior to AI, my feeling around this was, none of the others were valid choices. I think today there is much greater potential because there are new entrants attacking the problem in a different way." The DOJ's antitrust case against Google has revealed a wealth of backdoor dealings between the two tech giants. Most notable was the annual $20 billion Google pays Apple to be the default search engine for Safari. It does make business sense for Google to pay for this exclusivity, as Safari is the second most-used web browser, right behind Google Chrome. Cue says Google should still be the default for Safari, but added how he has lost sleep over possibly losing the revenue from the two companies' agreement, Bloomberg reported. AI searches make up a tiny yet growing number as more people begin regularly using AI models like ChatGPT and Gemini. A report from SparkToro found that in 2024, there were more than 14 billion Google searches per day, while ChatGPT had far fewer, with 37.5 million. The number of AI searches will continue to grow steadily as more people begin using AI agents on a regular basis.

Apple eyes AI-powered search as Safari usage declines

Apple is considering reworking its Safari web browser across its devices to place a greater emphasis on AI-powered search engines, Bloomberg reported Wednesday. The disclosure came from Eddy Cue, Apple's senior vice president of services, during his testimony Wednesday in the Department of Justice's lawsuit against Alphabet. Cue was speaking about the two companies' $20 billion-a-year deal that makes Google the default search engine on Apple's browsers. The Apple executive said he expects AI search providers -- like OpenAI, Anthropic, and Perplexity -- to eventually replace standard sources like Google. Apple has already seen a decline in Safari searches for the first time last month, which Cue attributed to the growing use of AI. Still, he added, it's too early for these platforms to become the default. Currently, Apple and Alphabet have a lucrative agreement that allows Apple users -- across more than two billion active devices -- to perform searches through Google. Initially, Apple agreed to use Google in its Safari browser for free. Eventually, the two companies agreed to share revenue generated from search advertising. A shift away from Google and the entry of multiple competitors into the space could jeopardize that profitable arrangement, which contributes significantly to Apple's revenue.

Safari might get OpenAI or Perplexity AI search options

Apple is exploring the integration of AI search engines from OpenAI, Perplexity, and Anthropic into its Safari browser, according to Bloomberg's report on Wednesday, citing testimony from Apple's Senior Vice President of Services, Eddy Cue, in the U.S. Justice Department's lawsuit against Alphabet. Cue's testimony also touched upon the estimated $20 billion annual deal between Apple and Google that makes Google the default search engine on Safari. He revealed that searches on Safari dropped for the first time last month, attributing the decline to the growing use of AI. Cue believes AI search providers will eventually replace traditional search engines like Google, prompting Apple to consider adding these services to Safari. However, he noted that they are unlikely to become the default search engine as they still require improvement. Apple has already initiated discussions with Perplexity, Cue disclosed during his testimony.

Apple Plans a Safari Revamp With AI Search. It's a Blow to Google's Dominance

Apple's plan to revamp its Safari web browser by adding AI-powered search options is a big blow to Google, whose shares tumbled as the move could strike at the heart of its lucrative search advertising business. Apple executive Eddy Cue offered testimony at an antitrust case against Alphabet on Wednesday, saying the iPhone maker was "actively looking at" reshaping Safari, a source familiar with the matter told Reuters. Cue also said Apple would add AI search providers, including OpenAI and Perplexity AI, as search options in the future, Bloomberg reported. The news pushed Alphabet shares down 7.6 percent, wiping off more than $150 billion from its market value. Apple stock also fell after Cue said searches on Safari fell for the first time last month due to users increasingly turning to AI.

Will AI replace Google on your iPhone? Apple thinks so. Here's why.

The Justice Department has begun a three-week hearing to determine how to address Google's illegal monopoly in internet search, with the government calling for major structural changes. With more of us turning to artificial intelligence for answers, what will become of the dominant search engine that for so long has been our main gateway to the internet? That existential question came to the fore Wednesday when Apple executive Eddy Cue testified in the Justice Department's antitrust case against Google owner Alphabet. Apple is "actively looking at" adding AI as an alternative to search, Cue said. Searches on Apple's web browser Safari fell for the first time last month- a decline he chalked up to users increasingly relying on AI, according to Bloomberg News. Google pays Apple $20 billion a year to be the default search engine on Apple devices - a lucrative deal that accounts for about 36% of its search advertising revenue, analysts estimate. Alphabet shares closed down 8% to $152.80 in heavy trading. Apple shares fell 1% to $196.25 after Cue's comments. Neither company responded to requests for comment. AI search providers such as OpenAI and Perplexity will eventually supplant Google and other conventional search engines, Cue said Wednesday. Apple plans to add those options in Safari down the road. "Prior to AI, my feeling around this was, none of the others were valid choices," Cue said, according to Bloomberg. "I think today there is much greater potential because there are new entrants attacking the problem in a different way." That's a big reason Google is flooding the zone with AI-generated answers in search results. On the company's earnings call last month, Alphabet CEO Sundar Pichai told analysts its Gemini AI technology has increased search volume. Wedbush Securities analyst Dan Ives said it was a "smart move" by Apple. "This is a shot across the bow against Google and Apple is hedging its bets on AI partners," Ives told USA TODAY. D.A. Davidson analyst Gil Luria told Reuters that losing exclusivity with Apple would have "very severe consequences for Google even if there are no further measures." Baird analyst Colin Sebastian called the selloff a "kneejerk reaction" and said investors should not be spooked by the headlines. "Most of what we heard is information (and risks) that should already be fairly well understood. We'd also remind investors that Google losing the Apple contract could still be net neutral (or even slightly positive) without ~$20 billion in annual payments to Apple that directly impact Google's margins," Sebastian wrote in a research note. What's more, even as AI engines gain market share, Google's own AI is making its search engine better at real-time responses, according to Sebastian. "Google also offers similar conversational AI interactions through AI overviews and Gemini, with AI Overviews now serving over 1.5 billion users monthly, making traditional Google search more useful in the process," he wrote.

Apple Could Soon Bring AI Search Features to Safari Browser

The AI search options in Safari will reportedly not be added as default Apple is reportedly considering bringing artificial intelligence (AI) search options to the Safari browser. According to the report, the information was shared by an Apple executive during a testimony in the ongoing antitrust case against the US Justice Department. The executive highlighted that the Cupertino-based tech giant had held discussions with several AI service providers recently to add their web search capabilities as a non-default option in its browser. Currently, the only holdup is said to be that these AI services are not up to the mark for Apple to reliably make the switch. According to a Bloomberg report, Eddy Cue, Senior Vice President of Services at Apple, took the stand on Wednesday during Google's antitrust case. While the ongoing case is about finding a solution to Google's Search monopoly and unethical practices, the core of the case is the $20 billion (roughly Rs. 1.6 lakh crore) that the search giant pays Apple to remain the default search engine on the Safari browser. In the testimony, Cue reportedly said that Apple is "actively looking" to onboard AI-powered search options to its browser. The executive reportedly said the consideration was being made as the company noticed a dip in search queries on Safari for the first time in April -- a trend not seen in the last 22 years. The trend is concerning for the iPhone maker as it directly hits the revenue it makes from Google's deal. As per the agreement, the Mountain View-based tech giant pays Apple a portion of ad revenue from searches on Safari. Fewer searches mean less ad revenue. Cue reportedly believes the traditional search traffic is moving to AI Search engines and chatbot services. He added that earlier he did not consider them a valid alternative, but with recent developments, "I think today there is much greater potential because there are new entrants attacking the problem in a different way." Apple has reportedly held discussions with OpenAI, Perplexity, and Anthropic about bringing the AI-led search feature to Safari. But the company is said not to be in a rush, as the quality of the search engine is thought not to be on par with what Apple users are used to. And, even when these are added, they won't be offered as default, Cue was quoted as saying.

Will AI Really Be the Demise of Google Search?

Alphabet (GOOG)(GOOGL) stock sank on Wednesday after comments from an Apple (AAPL) executive stoked concerns that artificial intelligence is chipping away at Google's bread-and-butter online search business. Apple senior vice president of services Eddy Cue reportedly said search volume in Apple's Safari browser, in which Google is the default search engine, declined for the first time ever in April, which he attributed to the increasing popularity of AI alternatives. According to Cue, Apple is considering adding AI-enabled search services like those from OpenAI, Perplexity and Anthropic to its devices at some point in the future. Shares of Alphabet tumbled more than 7% on Wednesday to lead S&P 500 decliners. Questions about Google's search dominance have been buzzing about Wall Street ever since 2022 when OpenAI's ChatGPT exploded onto the scene. Analysts immediately began speculating that AI chatbots would supplant search engines as internet users' preferred source of information and analysis. For some market watchers, Cue's comments were further proof of this trend. "Search is shifting away from the traditional blue-link results page that we've loved for the past 25 years, to a simplified AI-powered result," wrote Gene Munster, Managing Partner at Deepwater Asset Management, in a post to X. He says the change poses two problems for Google: "First, the monetization model of sponsored ads needs to be overhauled. Second, Google Search has new competitors, including OpenAI, Grok, Perplexity, etc." Wall Street analysts, though, were generally encouraged by what they saw in Alphabet's first-quarter earnings last month. "We continue to believe Google has data and distribution advantages and has closed the (large language model) performance gap," Bank of America analysts wrote of the company's efforts to fend off AI-first competition. "While still early days, we are excited about AI Mode which brings Gemini directly into search and adds advanced reasoning multi-modal capabilities," said JPMorgan analysts, referring to an experimental search feature that, according to executives, could double the time users spend on Google. Alphabet has a big head start on its AI-first competitors. Google's share of global search traffic is estimated to be about 90%. The next-largest search engine, Bing, is estimated to receive just 4% of all search queries. The threat of AI companies encroaching on its search traffic is acute for Alphabet. Ads displayed on Google's search engine and related properties like Gmail, Google Maps and Google Play, accounted for 56% of Alphabet's total revenue in the first quarter. Google has made it a priority to keep its advantage by integrating AI into its search engine. The company has rolled out AI Overviews, which respond to queries from more than 1.5 billion users in 140 countries a month, said executives on Alphabet's earnings call last month. Executives say AI summaries are monetized at approximately the same rate as traditional search. One very serious risk to Google's search dominance: antitrust enforcement. Last August, a federal judge agreed with Justice Department prosecutors that Google operated an illegal monopoly in the online search market. Cue's comments on Wednesday came as part of testimony in proceedings meant to find a remedy to that monopoly.

Google stock falls as Apple signals interest in AI search rivals like Perplexity

Google stock slumped over 6 per cent after Apple's Eddy Cue revealed at Alphabet's antitrust trial that Apple is eyeing AI search engines like Perplexity AI as possible Safari defaults. Though Google remains Safari's default search engine, the rise of AI-powered search tools threatens to disrupt its dominance and lucrative dealsShares of Google-parent Alphabet dropped more than 6 per cent on Wednesday, May 7 following explosive testimony from Apple (AAPL) executive Eddy Cue, who said the company is evaluating AI search engines such as Perplexity for integration into Safari. The comment came during the US government's antitrust trial against Google, which accuses the tech giant of maintaining a monopoly in online search. Cue disclosed that for the first time, Safari experienced a drop in search usage last month, as users increasingly explore AI-based alternatives. While he clarified that Apple won't immediately replace Google due to the $20 billion annual deal it earns from the partnership, Cue predicted that AI search apps would eventually supplant traditional search engines. Also read: 'Don't break Google': Perplexity AI CEO offers alternative ahead of antitrust testimony The shift signals a broader threat to Google Search as Apple's tech ecosystem gradually leans into AI integration. Through its Apple Intelligence platform, Apple already offers ChatGPT as a search tool. Meanwhile, Google is racing to stay ahead by rolling out AI Overviews and testing a ChatGPT-style AI Mode within its core Google Search. Though Google's Gemini search exists as a standalone AI product, it hasn't replaced the default experience. Microsoft's Copilot Search and OpenAI's expanding reach with Perplexity AI only add to the mounting pressure on Google to protect its dominant position. Apple's deal is just one of many Google holds with device makers, including Samsung, to maintain its grip on search traffic worldwide. However, Apple's reliance on this deal -- contributing to its $96.1 billion Services revenue in 2024 -- makes the company both a partner and a potential disruptor in the AI search engine race.

Alphabet shares fall 9% as Apple looks to add AI search to Safari in potential blow for Google: Report

Apple is "actively looking at" reshaping the Safari web browser on its devices to focus on AI-powered search engines, Bloomberg News reported on Wednesday, a move that could chip away at Google's dominance in the lucrative search market. Apple executive Eddy Cue testified in the U.S. Justice Department's antitrust case against Alphabet, saying searches on Safari fell for the first time last month, which he attributed to users increasingly turning to AI, according to the report. Google is the default search engine on Apple's browser, a coveted position for which it pays Apple roughly $20 billion annually, or about 36% of its search advertising revenue generated through the Safari browser, analysts have estimated. Losing that position could heap pressure on Google just as it faces fierce competition from AI startups such as OpenAI and Perplexity. Apple has already struck a deal with OpenAI to offer ChatGPT as an option in Siri, while Google is trying to secure an agreement by mid-year to embed its Gemini AI technology in Apple's latest devices. Alphabet shares fell 9.1%, while Apple was down about 2%. Both companies and the DoJ did not respond to Reuters' requests for comment. Cue said he believes AI search providers, including OpenAI and Perplexity AI, will eventually replace standard search engines such as Google, and that Apple will add those players as options in Safari in the future, according to the report. "We will add them to the list - they probably won't be the default," Bloomberg News cited Cue as saying. Last month, Google reassured jittery tech investors that its AI investments were powering returns at its crucial ad business after its first-quarter profit and revenue beat expectations. "The loss of exclusivity at Apple should have very severe consequences for Google even if there are no further measures," D.A. Davidson analyst Gil Luria said. "Many advertisers have all of their search advertising with Google because it is practically a monopoly with almost 90% share. If there were other viable alternatives for search, many advertisers could move much of their ad budgets away from Google to these other venues." (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Leroy Leo and Anil D'Silva)

Apple looks to add AI search to Safari in potential blow for Google

Apple executive Eddy Cue made the comments while testifying as a witness for Google in the U.S. Department of Justice's antitrust case over Google's dominance in online search, according to a source familiar with the matter.Apple is "actively looking" at adding artificial intelligence-powered search options to its Safari browser, potentially dealing a big blow to Google's dominance of the lucrative search market. Apple executive Eddy Cue made the comments while testifying as a witness for Google in the U.S. Department of Justice's antitrust case over Google's dominance in online search, according to a source familiar with the matter. Alphabet shares fell 6% on Wednesday, while Apple slid 2%. Both companies did not respond to requests for comment, while a spokesperson for the DoJ declined to comment. Google is the default search engine on Apple's browser, a coveted position for which it pays Apple roughly $20 billion annually, or about 36% of its search advertising revenue generated through the Safari browser, analysts have estimated. Any shift in Apple's approach could reshape the search landscape, given its vast installed base of around 2.5 billion devices which makes the company one of the world's most influential gatekeepers for online search. Google is already facing fierce competition from AI startups such as OpenAI and Perplexity. Apple has also struck a deal with OpenAI to offer ChatGPT as an option in Siri, while Google is trying to secure an agreement by mid-year to embed its Gemini AI technology in Apple's latest devices. "The loss of exclusivity at Apple should have very severe consequences for Google even if there are no further measures," D.A. Davidson analyst Gil Luria said. "Many advertisers have all of their search advertising with Google because it is practically a monopoly with almost 90% share. If there were other viable alternatives for search, many advertisers could move much of their ad budgets away from Google," Luria added. Cue said during his testimony that searches on Safari fell for the first time last month, which he attributed to users increasingly turning to AI, according to Bloomberg News. He said he believes AI search providers, including OpenAI and Perplexity AI, will eventually replace standard search engines such as Google, and that Apple will add those players as options in Safari in the future, according to the report. "We will add them to the list - they probably won't be the default," Bloomberg News cited Cue as saying. Last month, Google reassured jittery tech investors that its AI investments were powering returns at its crucial ad business after its first-quarter profit and revenue beat expectations.

Apple Considers Safari Overhaul Amid Uncertainty Over $20 Billion Google Deal | PYMNTS.com

In the face of legal pressure threatening its lucrative deal with Google, Apple is reportedly weighing major changes to its Safari web browser, including a potential shift toward artificial intelligence-powered search engines, according to Apple Insider. As Google contends with the U.S. Justice Department over possible remedies in an ongoing antitrust lawsuit, Apple could see its long-standing $20 billion-a-year arrangement -- making Google the default search engine on Safari -- terminated. That prospect is pushing Apple to explore alternative strategies, per Apple Insider. During court testimony, Apple's Senior Vice President of Services, Eddy Cue, revealed that the company is "actively looking" into reimagining how Safari handles search. One of the primary directions being considered is integrating AI-driven search platforms, such as those developed by OpenAI, Perplexity AI, and Anthropic, into Safari's search options. Apple Insider reports that Cue noted a decline in Safari searches this past April -- the first time such a drop has been recorded. He attributed the decrease to the growing popularity of AI tools for handling user queries, which are increasingly encroaching on traditional search engine territory. Read more: Apple Seeks Role in Google's US Antitrust Trial Although Apple is exploring these AI search engines, Cue made it clear that they are not expected to become the default option on Safari anytime soon. According to Reuters, Cue indicated that these AI tools, while promising, still require further development to meet Apple's standards. The potential departure from Google as Safari's default search engine would mark a significant shift for both companies. For Apple, it would mean adjusting to the loss of a major revenue stream, while for Google, it could mean losing a valuable source of search traffic on one of the most widely used mobile platforms. Apple's openness to AI search integration reflects a broader trend in the tech industry, where artificial intelligence continues to reshape how users interact with information online. As the antitrust case unfolds, Apple appears to be preparing for a future where the dominance of traditional search engines may no longer be guaranteed.

Apple Eyes Adding AI Search to Replace Google, Ending Tech Giant Partnership | PYMNTS.com

Apple is "actively looking at" revamping its Safari web browser to concentrate on artificial intelligence (AI)-powered search engines and shift away from Google search, potentially creating a colossal shift in the mobile browser landscape. This disclosure was made by Apple's Senior Vice President of Services Eddy Cue during his testimony in the U.S. Justice Department's lawsuit against Alphabet, the parent company of Google, according to Bloomberg on Wednesday (May 7). The lawsuit centers on the estimated $20 billion-a-year agreement that makes Google the default search engine in Safari on Apple devices. This legal challenge could potentially compel the two technology giants to dismantle the agreement. The consideration of AI search integration comes as AI technology gains traction with consumers. Cue noted a recent dip in Safari searches, which he attributed to increased use of AI. He expressed belief that AI search providers, such as OpenAI, Perplexity AI and Anthropic, will eventually supplant standard search engines like Google. Cue stated that Apple plans to add these options to Safari in the future. Apple has held discussions with Perplexity to implement this capability. According to Cue's testimony, he previously felt that alternative search options were not "valid choices." Presently, however, he said he sees "much greater potential because there are new entrants attacking the problem in a different way." This move represents a major shift for Apple, whose users have relied on Google search in Safari since the iPhone's debut in 2007. The company currently has more than 2 billion active devices worldwide. The testimony reportedly led to declines in both Alphabet and Apple shares on Wednesday. While Cue acknowledged the financial benefits of the current agreement with Google and the potential revenue loss, he also stated his belief that technology shifts, like AI, create opportunities for new entrants and true competition.

Alphabet, Apple shares lose value amid possible search engine change

May 7 (UPI) -- The revelation of a potential change from Google to an AI-powered search engine for Apple's Safari web browser caused shares in both tech firms to lose value on Wednesday. Apple shares dropped 2.1% to $194.35, and Alphabet shares dropped 5.7% to $153.95 during trading Wednesday afternoon, Benzinga reported. The respective share values dropped after Apple Senior Vice President of Services Eddy Cue told a federal court that Apple officials are considering replacing Google with an AI-powered search engine for Apple's proprietary Safari browser that is installed on all of its computers, Bloomberg reported. Apple officials are considering search engines from OpenAI, Anthropic and Perplexity AI due to recent decreases in searches made using the Safari browser, Cue said while testifying during a federal antitrust trial in Washington, D.C. The antitrust trial concerns Google's search engine, which Apple officials are considering replacing due to declining search-related revenue, Investing.com reported. Alphabet share prices recently dropped by 9% during trading and are down about 20% for the year, according to Investopedia. The antitrust lawsuit involves Google and its dominance of the nation's search engine market, but talk of Apple officials considering switching to a new search engine could affect Apple's revenue. News that Apple officials are considering replacing the default Safari search engine in new computers caused concern among its investors due to Google being a significant source of revenue for Apple. Alphabet annually pays Apple about $20 billion to have Google included as the default search engine on Apple's Safari web browser. A potential loss of that annual revenue is making Apple investors cautious and negatively affecting Apple's share price.

Google stock drops nearly 10% after Apple says it could ditch search...

Shares of Google parent Alphabet Inc. tanked more than 7% on Wednesday after a senior Apple executive signaled that the iPhone maker was looking at search engine alternatives for its Safari web browser. Eddie Cue, Apple's senior vice president of services, testified on Wednesday as part of the Justice Department's antitrust lawsuit against Google that Apple was "actively looking at" AI-powered search engines which would replace Google as the default option on the iPhone and other devices. Alphabet shares were recently off more than 9%, or $15.25, at $149.95. Cue, who reports directly to CEO Tim Cook, testified in court on Wednesday that Apple has noticed a decrease in the number of searches that were conducted by Safari users -- an increasing number of whom have migrated to AI, according to Bloomberg. Cue said he expects artificial intelligence-driven search platforms -- such as OpenAI's ChatGPT, Perplexity AI and Anthropic -- to eventually supplant traditional search engines like Google. He added that Apple plans to integrate these emerging tools as search options within Safari down the line. "We'll include them in the lineup -- though they likely won't be set as the default," he said, noting that the services still need refinement. Cue confirmed that Apple has held preliminary talks with Perplexity. "Before AI came into play, I didn't see any of the alternatives as serious contenders," he said. "But I think the landscape is changing. There's now real potential thanks to new players approaching the challenge with fresh perspectives." Apple currently integrates ChatGPT as a feature within Siri and is expected to introduce Google's Gemini -- its AI-powered search tool -- sometime later this year. According to Cue, Apple also evaluated AI offerings from Anthropic, Perplexity, DeepSeek and Elon Musk's Grok during the process. Cue emphasized that the deal with OpenAI does not limit Apple's flexibility, saying it "allows [Apple] to add other AI providers into the company's operating system, including its own." Cue revealed that before ChatGPT was selected to power Apple Intelligence in iOS 18, the company had evaluated multiple contenders -- including Google. He described the process as a "bake-off" and said Google submitted a term sheet that included "a lot of things Apple wouldn't agree to and didn't agree to with OpenAI." Cue emphasized that the rapid pace of innovation in technology could eventually render even today's most essential devices obsolete. "You may not need an iPhone 10 years from now as crazy as it sounds," he said. "The only way you truly have true competition is when you have technology shifts. Technology shifts create these opportunities. AI is a new technology shift, and it's creating new opportunities for new entrants." He also noted that for AI platforms to remain competitive, they'll need to significantly enhance their search indexes. Still, even if that progress is slow, he believes the advantages of AI-driven tools may already be enough to entice users. "There's enough money now, enough large players, that I don't see how it doesn't happen," Cue said, referring to a broader move away from traditional search engines toward AI alternatives. Alphabet's stock dropped by as much as 7% on Wednesday, helping to pull the broader market downward. Apple also took a hit, falling up to 2.5% following Cue's testimony. The S&P 500 Index, which had been up more than 0.5% earlier in the day, briefly turned negative. In 2022, Google paid Apple $20 billion to remain the default search engine on Safari across iPhones, iPads and Macs. This figure was disclosed in court documents during the Justice Department's antitrust lawsuit against Google, marking the first public confirmation of the payment amount. The agreement between Google and Apple has been a focal point in the DOJ's case, which alleges that Google's substantial payments to secure default search engine status on various platforms have contributed to its dominance in the search market. The DOJ contends that such arrangements hinder competition by making it challenging for rival search engines to gain visibility and market share.

Will Apple's AI Safari Dethrone Google as the King of Search?

Apple is set to revolutionize internet usage with Safari's rumored AI integration, a move that could significantly impact consumers and the search engine industry. By embedding AI capabilities directly into the browser, Apple may reduce its reliance on Google, potentially reshaping search, user behavior, and digital advertising. Apple is reportedly working on embedding generative AI into its Safari browser, enhancing how users get answers and explore the web. Unlike Google Search, which directs users through numerous links, may offer direct responses within the browser interface, similar to how ChatGPT functions. This could allow Safari users to receive summarized answers, product comparisons, or contextual content without needing to visit multiple websites or sift through search results. The convenience and speed of this experience could rapidly become the new norm.

Top Apple Exec Hints Google's Days of Dominance May Be Numbered as AI Replaces Standard Internet Search

Eddy Cue says old-fashioned Google searches on Apple's Safari dropped for the first time in history last month. Google stock plunged Wednesday after Apple's senior vice president of services said the tech giant believes AI search engines will eventually replace standard search engines, according to a new report. Apple's Eddy Cue, testifying in the Justice Department's lawsuit against Alphabet Inc., Google's parent company, said Apple is looking to add artificial intelligence services as search options in new versions of its Safari browser in the future, according to Bloomberg News. He acknowledged that searches on Safari dropped for the first time last month, which he said was likely because people were using AI search engines -- which include OpenAI, Perplexity AI Inc. and Anthropic PBC -- instead of Google's standard search engine. Mr. Cue said AI will eventually replace search engines like Google. "Prior to AI, my feeling around this was, none of the others were valid choices," Mr. Cue said. "I think today there is much greater potential because there are new entrants attacking the problem in a different way." "There's enough money now, enough large players, that I don't see how [the switch] doesn't happen," Mr. Cue said. At the heart of the Justice Department's case is Alphabet's $20 billion-a-year agreement with Apple, which secures Google's position as the default search engine on Safari, the browser pre-installed on Apple devices. Mr. Cue acknowledged the financial importance of the partnership, stating he has "lost sleep over the possibility of losing the revenue share from their agreement." Yet he also noted that technology is "changing fast enough that people may not even use the same devices in a few years. You may not need an iPhone 10 years from now, as crazy as it sounds." "The only way you truly have true competition is when you have technology shifts," Mr. Cue said. "AI is a new technology shift, and it's creating new opportunities for new entrants." Apple has already integrated OpenAI's ChatGPT into Siri and is expected to incorporate Google's AI product, Gemini, later this year. Discussions have also been held with Perplexity and Anthropic as potential additions to Safari's search options. Following Mr. Cue's comments, Alphabet shares dropped as much as 8 percent, dragging the broader market lower, while Apple's shares fell by as much as 2.5 percent. The S&P 500 also dipped into negative territory after briefly gaining earlier in the day. The stakes remain high for both companies. For Alphabet, the Justice Department is seeking to penalize Google's alleged monopolistic practices. For Apple, the future of its multibillion-dollar revenue stream from Google's deal hangs in the balance, especially as it assesses the growing appeal of AI-powered search solutions.

Apple looks to add AI search to Safari in potential blow for Google, Bloomberg News reports

(Reuters) - Apple is "actively looking at" reshaping the Safari web browser on its devices to focus on AI-powered search engines, Bloomberg News reported on Wednesday, a move that could chip away at Google's dominance in the lucrative search market. Apple executive Eddy Cue testified in the U.S. Justice Department's antitrust case against Alphabet, saying searches on Safari fell for the first time last month, which he attributed to users increasingly turning to AI, according to the report. Google is the default search engine on Apple's browser, a coveted position for which it pays Apple roughly $20 billion annually, or about 36% of its search advertising revenue generated through the Safari browser, analysts have estimated. Losing that position could heap pressure on Google just as it faces fierce competition from AI startups such as OpenAI and Perplexity. Apple has already struck a deal with OpenAI to offer ChatGPT as an option in Siri, while Google is trying to secure an agreement by mid-year to embed its Gemini AI technology in Apple's latest devices. Alphabet shares fell 6%, while Apple was down about 2%. Both companies and the DoJ did not respond to Reuters' requests for comment. Cue said he believes AI search providers, including OpenAI and Perplexity AI, will eventually replace standard search engines such as Google, and that Apple will add those players as options in Safari in the future, according to the report. "We will add them to the list - they probably won't be the default," Bloomberg News cited Cue as saying. Last month, Google reassured jittery tech investors that its AI investments were powering returns at its crucial ad business after its first-quarter profit and revenue beat expectations. "The loss of exclusivity at Apple should have very severe consequences for Google even if there are no further measures," D.A. Davidson analyst Gil Luria said. "Many advertisers have all of their search advertising with Google because it is practically a monopoly with almost 90% share. If there were other viable alternatives for search, many advertisers could move much of their ad budgets away from Google to these other venues." (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Leroy Leo and Anil D'Silva)

Apple looks to add AI search to company's browser, Bloomberg reports

(Reuters) -Apple is "actively looking" to reshape the Safari web browser to focus on AI-powered search engines, Bloomberg News reported on Wednesday, citing an Apple executive's disclosures in the U.S. Justice Department's lawsuit against Alphabet. Apple shares fell 2% following the report while Google-parent Alphabet tumbled more than 6%. The dispute stems from Apple and Google's estimated $20 billion-a-year deal that makes Google the default offering for queries in Apple's included browser, Bloomberg reported. Eddy Cue, Apple's senior vice president of services, noted that searches on Safari dipped for the first time last month, which he attributed to people using AI, according to the report. Apple and Google did not immediately respond to Reuters' request for comment. Cue said he believes that AI search providers, including OpenAI, Perplexity AI and Anthropic, will eventually replace standard search engines like Google, Bloomberg reported. Apple will add those players as options in Safari in the future, Cue said, according to the report. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Leroy Leo)

Apple's Safari revamp plan with AI search a likely blow to Google dominance

(Reuters) -Apple's plan to revamp its Safari web browser by adding AI-powered search options is a big blow to Google, whose shares tumbled as the move could strike at the heart of its lucrative search advertising business. Apple executive Eddy Cue offered testimony at an antitrust case against Alphabet on Wednesday, saying the iPhone maker was "actively looking at" reshaping Safari, a source familiar with the matter told Reuters. Cue also said Apple would add AI search providers, including OpenAI and Perplexity AI, as search options in the future, Bloomberg reported. The news pushed Alphabet shares down 7.6%, wiping off more than $150 billion from its market value. Apple stock also fell after Cue said searches on Safari fell for the first time last month due to users increasingly turning to AI. The commentary suggested that a seismic shift in search is around the corner and not years away, threatening Google's once impenetrable moat in the search business. To be sure, Google is not defenseless. It has introduced an "AI mode" on its search page to retain its millions of users from going away to other AI models. The company hopes to enter an agreement with Apple by the middle of this year to include its Gemini AI technology on new phones, CEO Sundar Pichai said in a testimony at an antitrust trial last month. Google is the default search engine on Apple's browser, a coveted position for which it pays Apple roughly $20 billion a year, or about 36% of its search advertising revenue generated through the Safari browser, analysts have estimated. "The loss of exclusivity at Apple should have very severe consequences for Google even if there are no further measures," D.A. Davidson analyst Gil Luria said. "Many advertisers have all of their search advertising with Google because it is practically a monopoly with almost 90% share. If there were other viable alternatives for search, many advertisers could move much of their ad budgets away from Google," Luria said. (Reporting by Jody Godoy in Washington and Arsheeya Bajwa and Aditya Soni in Bengaluru; Editing by Sayantani Ghosh, Anil D'Silva and Arun Koyyur)

Apple looks to add AI search to Safari in potential blow for Google

(Reuters) - Apple is "actively looking" at adding artificial intelligence-powered search options to its Safari browser, potentially dealing a big blow to Google's dominance of the lucrative search market. Apple executive Eddy Cue made the comments while testifying as a witness for Google in the U.S. Department of Justice's antitrust case over Google's dominance in online search, according to a source familiar with the matter. Alphabet shares fell 6% on Wednesday, while Apple slid 2%. Both companies did not respond to requests for comment, while a spokesperson for the DoJ declined to comment. Google is the default search engine on Apple's browser, a coveted position for which it pays Apple roughly $20 billion annually, or about 36% of its search advertising revenue generated through the Safari browser, analysts have estimated. Any shift in Apple's approach could reshape the search landscape, given its vast installed base of around 2.5 billion devices which makes the company one of the world's most influential gatekeepers for online search. Google is already facing fierce competition from AI startups such as OpenAI and Perplexity. Apple has also struck a deal with OpenAI to offer ChatGPT as an option in Siri, while Google is trying to secure an agreement by mid-year to embed its Gemini AI technology in Apple's latest devices. "The loss of exclusivity at Apple should have very severe consequences for Google even if there are no further measures," D.A. Davidson analyst Gil Luria said. "Many advertisers have all of their search advertising with Google because it is practically a monopoly with almost 90% share. If there were other viable alternatives for search, many advertisers could move much of their ad budgets away from Google," Luria added. Cue said during his testimony that searches on Safari fell for the first time last month, which he attributed to users increasingly turning to AI, according to Bloomberg News. He said he believes AI search providers, including OpenAI and Perplexity AI, will eventually replace standard search engines such as Google, and that Apple will add those players as options in Safari in the future, according to the report. "We will add them to the list - they probably won't be the default," Bloomberg News cited Cue as saying. Last month, Google reassured jittery tech investors that its AI investments were powering returns at its crucial ad business after its first-quarter profit and revenue beat expectations. (Reporting by Jody Godoy in Washington and Arsheeya Bajwa and Aditya Soni in Bengaluru; Editing by Leroy Leo and Anil D'Silva)

Apple's plan to offer AI search options on Safari a blow to Google dominance

(Reuters) -Apple's plans to add AI-powered search options to its Safari browser are a big blow to Google, whose lucrative advertising business relies significantly on iPhone customers using its search engine. The news slammed shares of Google-parent Alphabet, which closed down 7.3%, wiping off roughly $150 billion from its market value. The iPhone maker was "actively looking at" reshaping Safari, a source familiar with the matter told Reuters, citing Apple executive Eddy Cue who was offering testimony at an antitrust case on Wednesday over Google's dominance in online search. Cue said searches on Safari fell for the first time last month due to users increasingly turning to AI, according to the source. Apple stock closed down 1.1%. The commentary suggests that a seismic shift in search is likely underway, threatening Google's dominant search business - a go-to advertising destination for marketers that has now become a target for U.S. antitrust regulators, which filed two major lawsuits against the company. Google is the default search engine on Apple's browser, a coveted position for which it pays the iPhone maker roughly $20 billion a year, or about 36% of its search advertising revenue generated through the Safari browser, analysts have estimated. Banning Google from paying companies to be the default search engine is among the remedies that the U.S. Justice Department has proposed to break up its dominance in online search. "The loss of exclusivity at Apple should have very severe consequences for Google even if there are no further measures," D.A. Davidson analyst Gil Luria said. "Many advertisers have all of their search advertising with Google because it is practically a monopoly with almost 90% share. If there were other viable alternatives for search, many advertisers could move much of their ad budgets away from Google," Luria said. Google is not defenseless. Written off as an also-ran in the AI race by critics after ChatGPT's buzzy launch in late 2022, Google has reached into its deep pockets to fund its AI efforts and leverage its vast data trove. The company introduced an "AI mode" on its search page earlier this year, looking to retain its millions of users from going away to other AI models. It recently expanded AI Overviews - summaries that appear atop the traditional hyperlinks to relevant webpages on a search query - for users in more than 100 countries, and added advertisements to feature, boosting Search ad sales. CEO Sundar Pichai said in a testimony at an antitrust trial last month that Google hopes to enter an agreement with Apple by the middle of this year to include its Gemini AI technology on new phones. Apple's Cue on Wednesday also said the company would add AI search providers, including OpenAI and Perplexity AI, as search options in the future, Bloomberg reported. "(Apple's plan) also shows how far generative search sites, such as ChatGPT and Perplexity have come," said Yory Wurmser, principal analyst for advertising, media & technology at eMarketer. That Google is willing to pay tens of billions of dollars to remain the default search engine shows how crucial the agreements are, Wurmser said. For instance, ChatGPT in April reported seeing over 1 billion weekly web searches. It has more than 400 million weekly active users, as of February. (Reporting by Jody Godoy in Washington and Arsheeya Bajwa and Aditya Soni in Bengaluru; Additional reporting by Deborah Sophia; Editing by Sayantani Ghosh, Arun Koyyur and Anil D'Silva)

Apple's plan to offer AI search options on Safari a blow to Google dominance - VnExpress International

The news slammed shares of Google-parent Alphabet, which closed down 7.3%, wiping off roughly $150 billion from its market value. The iPhone maker was "actively looking at" reshaping Safari, a source familiar with the matter told Reuters, citing Apple executive Eddy Cue who was offering testimony at an antitrust case on Wednesday over Google's dominance in online search. Cue said searches on Safari fell for the first time last month due to users increasingly turning to AI, according to the source. Apple stock closed down 1.1%. Google said that it continued to see growth in the overall number of search queries, including "total queries coming from Apple's devices and platforms," according to a statement posted on the company's blog. "People are seeing that Google Search is more useful for more of their queries -- and they're accessing it for new things and in new ways," the company wrote. Google cited voice and visual search features as contributors to total search volume growth. It was unclear whether Cue was using the same basis of comparison in his testimony when analyzing types of searches. Still, the Apple executive's comments suggests that a seismic shift in search is likely underway, threatening Google's dominant search business - a go-to advertising destination for marketers that has now become a target for U.S. antitrust regulators, which filed two major lawsuits against the company. Google is the default search engine on Apple's browser, a coveted position for which it pays the iPhone maker roughly $20 billion a year, or about 36% of its search advertising revenue generated through the Safari browser, analysts have estimated. Banning Google from paying companies to be the default search engine is among the remedies that the U.S. Justice Department has proposed to break up its dominance in online search. "The loss of exclusivity at Apple should have very severe consequences for Google even if there are no further measures," D.A. Davidson analyst Gil Luria said. "Many advertisers have all of their search advertising with Google because it is practically a monopoly with almost 90% share. If there were other viable alternatives for search, many advertisers could move much of their ad budgets away from Google," Luria said. Google is not defenseless. Written off as an also-ran in the AI race by critics after ChatGPT's buzzy launch in late 2022, Google has reached into its deep pockets to fund its AI efforts and leverage its vast data trove. The company introduced an "AI mode" on its search page earlier this year, looking to retain its millions of users from going away to other AI models. It recently expanded AI Overviews - summaries that appear atop the traditional hyperlinks to relevant webpages on a search query - for users in more than 100 countries, and added advertisements to feature, boosting Search ad sales. CEO Sundar Pichai said in a testimony at an antitrust trial last month that Google hopes to enter an agreement with Apple by the middle of this year to include its Gemini AI technology on new phones. Apple's Cue on Wednesday also said the company would add AI search providers, including OpenAI and Perplexity AI, as search options in the future, Bloomberg reported. "(Apple's plan) also shows how far generative search sites, such as ChatGPT and Perplexity have come," said Yory Wurmser, principal analyst for advertising, media & technology at eMarketer. That Google is willing to pay tens of billions of dollars to remain the default search engine shows how crucial the agreements are, Wurmser said. For instance, ChatGPT in April reported seeing over 1 billion weekly web searches for its search feature. It has more than 400 million weekly active users, as of February.

Apple plan to offer AI search sinks shares in Google-owner Alphabet

STORY: Shares in Google-owner Alphabet tumbled over 7% on Wednesday, wiping some $150 billion off its market value. And it's Apple to blame. The drop came after a Reuters source said the iPhone maker is planning to add AI search to its Safari internet browser. The source cited Apple executive Eddy Cue. If confirmed, the move could pose a huge threat to Google, which is currently the default search engine on Safari. The firm pays Apple around $20 billion a year for the privilege, or more than a third of the search advertising revenue it generates through the browser. The position also helps it dominate the market for search-related advertising, for which it has a near monopoly. Now that could be threatened if Apple's own AI offering takes some market share. Google also faces other potential rivals including OpenAI, which has added search functions to ChatGPT. The Reuters source says Cue said a shift was already under way, with searches on Safari down last month for the first time as users moved to AI services. However, Google is far from defenseless in the face of change. It has poured billions of dollars into AI research, leveraging its vast troves of data. The firm has also expanded its AI Overviews - that's the summaries that now appear above the traditional list of search results. Chief Executive Sundar Pichai said last month that he hoped to strike a deal with Apple to use Google's Gemini AI technology on new phones.

Apple may ditch Google for AI Search in Safari: OpenAI, Perplexity among contenders, says official

Google CEO Sundar Pichai recently confirmed that Google is in talks with Apple to bring its Gemini AI to iPhones. Apple might be getting ready to bring artificial intelligence (AI) search features to Safari. According to Apple's senior vice president of services, Eddy Cue, the company is "actively looking at" adding AI-powered search options to Safari in the near future. Cue made this statement while testifying during Google's antitrust trial on Wednesday. Cue mentioned that Apple could introduce AI search features for Safari as early as next year, according to The Verge. "To date, they're just not good enough," he said. Also read: Apple iPhone 17 Pro price in India, launch timeline, camera and all other leaks Apple has spoken with several companies leading the AI space, including OpenAI, Anthropic, and Perplexity, the report said. Although Apple already has a deal with OpenAI, Cue emphasised the need to stay flexible. "It was important to make sure we have the capability to switch if we have to," he said. The testimony also highlighted that Apple's deal with Google -- worth around $20 billion -- makes Google the default search engine on Safari. Cue shared that searches done through Safari actually dropped for the first time ever last month. "That has never happened in 22 years," he noted. Also read: Google mocks Apple as iPhone 17 leaks reveal Pixel-inspired design This decline in searches is a concern for Apple because the company earns a portion of the advertising revenue from Google searches made through Safari. With fewer searches, that revenue also falls. Cue admitted that he's "lost a lot of sleep thinking about" the drop. Meanwhile, Google CEO Sundar Pichai recently confirmed that Google is in talks with Apple to bring its Gemini AI to iPhones. This deal could be finalised by mid-2025, with the rollout expected to be out by the end of this year.