The way people search for information online is changing. Traditional search engines are being challenged by AI that understands language better. This shift is a big deal for Google, the current leader in search.
Apple is adapting to this trend. Eddy Cue, Apple’s senior vice president of services, says they’re considering revamping Safari to support AI search more. This move is likely in case their deal with Google ends. The deal is worth $20 billion a year.
Cue revealed that Safari search volume dropped for the first time in April. This indicates users are switching to AI for searching. He added that AI is now solving search problems from different angles.
Apple thinks companies like OpenAI, Perplexity, Anthropic, DeepSeek, and Grok might become key players, replacing Google. They’re not the main choice yet, but Apple is preparing to add them to Safari as options.
Market Reaction
When this news broke, Alphabet’s (Google’s parent company) stock plummeted 8.8%. The US stock market followed suit. Apple’s stock also dropped 2.5%. Investors are worried that if Apple doesn’t renew its deal with Google, it will lose a significant revenue source.
Currently, the Google deal is still the most financially beneficial for Apple. Apple has even expanded its partnership with Google Lens as part of the Visual Intelligence feature in new iPhones. This feature lets users take pictures and analyze them with Google’s AI.
Apple isn’t cutting ties with Google immediately. However, they’re preparing for a new search era by opening the door to AI like ChatGPT and Perplexity in Safari. This could be the start of a global search industry shift in the next few years.