Apple Inc.’s intention to integrate AI-powered search alternatives into its Safari browser marks a potential turning point in the online search market, directly challenging Google’s longstanding dominance.
The announcement contributed to a 7.3% drop in Alphabet Inc.’s stock price on Tuesday, erasing approximately $150 billion in market value, Reuters reported.
The development was revealed during testimony from Apple executive Eddy Cue in the ongoing U.S. antitrust trial targeting Google’s search practices. Cue disclosed that Safari browser search volumes declined last month for the first time, a shift attributed to users gravitating toward AI-powered tools. Sources indicate Apple is considering including search options from OpenAI and Perplexity in future Safari updates.
Google remains the default search engine on Safari, a position it secures through an estimated $20 billion annual payment to Apple—approximately 36% of Google’s search advertising revenue from Safari users. This exclusivity is now under scrutiny by U.S. regulators, who are pushing for a ban on such default search agreements as part of broader remedies against Google’s alleged monopolistic behavior.
“The loss of exclusivity at Apple should have very severe consequences for Google,” said Gil Luria, analyst at D.A. Davidson. “If there were other viable alternatives for search, many advertisers could move significant portions of their ad budgets away from Google.”
While Apple explores alternatives, Google has been actively expanding its AI capabilities to defend its position. This includes introducing an “AI mode” and broadening the reach of its AI Overviews—a feature that presents AI-generated summaries above traditional search results. The company recently began including advertisements in these AI Overviews, bolstering its search-related ad revenue.
Google CEO Sundar Pichai testified that the company is in talks with Apple to integrate its Gemini AI technology into future iPhones. However, Apple’s growing interest in external AI search providers underscores the rising influence of generative AI in reshaping user behavior online.
According to industry estimates, ChatGPT alone saw over 1 billion weekly searches in April and had more than 400 million weekly active users as of February, suggesting that alternative AI platforms are rapidly gaining traction.
