Key Takeaways
- Apple is exploring the integration of artificial intelligence into its Safari browser’s search capabilities.
- This news led to a significant drop in Google’s parent company Alphabet’s stock, highlighting concerns over its lucrative search deal with Apple.
- Apple is reportedly considering partnerships with AI firms such as OpenAI, Anthropic, or Perplexity AI.
- The potential shift comes as Apple notes a recent decrease in Safari searches, possibly due to users turning to dedicated AI tools.
Apple is considering a significant update to its Safari browser by incorporating artificial intelligence into its search functions. This possibility was raised by Eddy Cue, Apple’s senior vice president of services, during testimony in Google’s ongoing antitrust trial, as reported by TechRepublic, which cited Bloomberg.
The mere suggestion sent ripples through the financial markets. Alphabet, Google’s parent company, saw its stock fall notably amid fears that Apple might end or alter its profitable arrangement where Google is the default search engine on Safari.
Cue stated that Apple is “actively looking at” overhauling Safari search to include AI. He indicated that Apple might team up with leading AI companies like OpenAI, Anthropic, or Perplexity AI to power these new search experiences.
This internal exploration at Apple comes at an interesting time. Cue mentioned that searches on Safari saw their first decrease last month, a change he attributed to users increasingly turning to AI-powered alternatives for information.
Google, on the other hand, maintains that the volume of searches on its platform originating from Apple devices and platforms remains steady. Despite Apple’s plans being preliminary, the information impacted Google’s stock during a sensitive period for the search giant.
Currently, Google pays Apple approximately $20 billion annually to ensure Google Search is the default option when users type queries into Safari’s navigation bar. Safari is the primary browser on iPhones and other Apple devices, making this deal highly valuable. Reuters has estimated that about 36% of Google’s search advertising revenue stems from Safari users.
The backdrop to these developments is Google’s antitrust trial. Last month, Google CEO Sundar Pichai mentioned the possibility of including Google’s Gemini AI on new Apple phones, though such statements made during legal proceedings are subject to change.
In the latest phase of the trial, a federal court found Google had violated antitrust law. The court is now considering potential remedies, which could include forcing Google to spin off its ad service, browser, or even its core search engine.
Any significant change in how default web searching operates could dramatically reshape the advertising industry, which Google Search has long dominated. Meanwhile, in a related development, OpenAI is reportedly considering integrating ads into ChatGPT responses, signaling further evolution in the AI and search landscape.
