Shares of Google parent Alphabet fell more than 8% as Apple Executive Eddy Cue said the company is “actively” adding AI-powered search options to its Safari browser. This could deal a major blow to Google's dominance over the lucrative search market.
At 2:52 p.m. ET, Google's stock fell 8.8%, wasting more than $150 billion from the market value of the letters. Apple stocks said the first search in safari last month has been turned to AI as users increasingly turn to AI, Cue said. Reuters Reported.
According to the report, Apple executives made these comments when Google testified as the dominant position in online searches in the U.S. Department of Justice (DOJ) antitrust case.
The report estimates that Google is the default search engine on Apple's browser, a coveted position that pays Apple about $20 billion a year, or about 36% of the search ad revenue generated through the Safari browser. ”
Neither the company nor the Justice Department responded to a request for comment, the report said.
What is Eddy Cue's testimony?
Cue said during his testimony that the search for Safari fell for the first time last month, and he attributed users to increasingly turning to AI, a Bloomberg Reported.
He said he believes AI search providers, including OpenAI and Cllexity AI, will eventually replace standard search engines like Google, and that Apple will add these players as options for safari in Safari in the future.
“We add them to the list – they probably won't be the default,” Bloomberg Quote prompt says.
The challenges Google may face
The report shows that given its massive installation site of about 2.5 billion devices, any change in Apple's approach could reshape the search landscape. Apple is one of the most influential cyber goalkeepers in the world.
Additionally, Google is already facing fierce competition from AI startups such as Openai and Cllexity AI. When Google tried to ensure its GEMINI AI technology was embedded in Apple's latest devices, the latter had reached an agreement with Openai to provide Chatgpt as a choice for Siri.
“Even without further measures, Apple’s loss of exclusivity should have very serious consequences for Google,” he said. Reuters Quote Davidson analyst Gil Luria.
Luria added: “Many advertisers have all search ads on Google because it is actually a monopoly with a share of nearly 90%. If there are other viable search alternatives, many advertisers can move most of their advertising budget away from Google.”
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