In a potential seismic shift for the tech industry, Apple is exploring the integration of AI-powered search alternatives into its Safari browser—an initiative that could threaten Google’s long-standing dominance in online search and digital advertising.
During a high-stakes antitrust trial against Alphabet, Apple’s Senior Vice President of Services, Eddy Cue, confirmed the company is seriously studying a redesigned Safari experience centered around generative AI tools. His remarks triggered investor anxiety, slashing Alphabet’s stock by over 7%—a $150 billion hit to its market capitalization. Apple’s shares dipped slightly by 1.1%.
AI Rising, Google Falling
The timing is no accident. Traditional search engines are losing ground as users increasingly turn to AI-driven tools like OpenAI’s ChatGPT or Perplexity for answers. Cue admitted that Safari search traffic declined for the first time last month, driven by this trend.
Apple is reportedly considering integrating multiple AI services—including OpenAI’s ChatGPT and Google’s own Gemini—into its devices. But there’s a catch: Google currently pays Apple an estimated $20 billion per year to remain the default search engine on Safari. Walking away from that deal would not only impact Apple’s services revenue but could also send shockwaves through Google’s advertising ecosystem.
A Tectonic Shift in Search
“Many advertisers have all of their search advertising with Google because it is practically a monopoly,” said D.A. Davidson analyst Gil Luria. If viable AI-powered alternatives emerge, the floodgates could open to redistribute ad dollars.
The U.S. Justice Department is already targeting Google’s exclusivity deals, arguing they help entrench its monopoly. Regulators are now proposing a ban on default search engine payments—a move that, if passed, could force Google to compete on merit rather than contracts.
Google’s Counteroffensive
Despite criticism, Google hasn’t been sitting still. It recently launched AI Overviews—summaries that answer queries directly above traditional search results—and is pushing its Gemini AI model to be a significant part of future partnerships, including one with Apple.
CEO Sundar Pichai testified last month that a deal to bring Gemini to iPhones could materialize by mid-year, underscoring Google’s willingness to spend big to stay relevant.
A Glimpse into the Future
Apple’s next move could reshape how billions of users interact with the web. If AI assistants become the norm in mobile search, Google’s grip on the market may loosen, and advertisers will have no choice but to follow the audience.
The future of search may no longer be about links—it may be about answers, summaries, and AI personalities. With Apple stepping into the arena, the age of generative search is no longer a concept—it’s a corporate reality.
