Apple is exploring a major shift in its Safari browser by integrating AI-powered search engines, potentially challenging Google’s long-held dominance in the search market, according to a report by Bloomberg News.
During a testimony in the U.S. Justice Department’s antitrust case against Alphabet, Apple executive Eddy Cue revealed that Safari searches dropped last month, a trend he linked to users increasingly relying on AI tools like ChatGPT and Perplexity AI.
Currently, Google holds the default search position in Safari—a valuable spot for which it reportedly pays Apple around $20 billion annually, representing roughly 36% of Google’s ad revenue from Safari. Losing this position could deal a significant blow to Google, especially as it faces growing competition from AI-driven platforms.
Apple has already partnered with OpenAI to integrate ChatGPT into Siri, and Google is in talks to secure a deal that would bring its Gemini AI to Apple devices by mid-year.
Cue suggested that while Google may remain the default search engine for now, AI alternatives such as OpenAI and Perplexity will be added to Safari’s list of options in the future.
Following the news, Alphabet shares dropped by 6%, while Apple’s shares were down 2%. Both companies and the Department of Justice declined to comment.
Analysts warn that losing exclusivity on Apple devices could have serious consequences for Google. “Many advertisers stick with Google due to its near-monopoly. But if credible alternatives emerge, advertisers may shift their spending,” said D.A. Davidson analyst Gil Luria.
