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In a significant development, Apple’s exploration of integrating AI-powered search options into its Safari browser has raised concerns about Google’s longstanding dominance in the search engine market. The updates to the search move suggests a potential shift in the dynamics between the two tech giants.
During a recent antitrust trial against Google, Apple executive Eddy Cue revealed that Safari experienced a decline in search usage for the first time. It is partially due to users, particularly from the younger generations, increasingly turning to AI tools like ChatGPT and Perplexity AI for queries.
The financial implications of an updated Safari are notable for Google, as the Silicon Valley search engine behemoth reportedly pays Apple around $20 billion annually to remain the default search engine on Safari. A shift towards AI alternatives could jeopardize this revenue stream for both companies. By highlighting the inevitable shift toward AI search, Cue suggested that Google’s search monopoly is naturally coming to an end.
In response to these developments, Alphabet’s stock experienced a significant drop, reflecting investor concerns about the future of Google’s search business.
