- Apple could take into account integrating AI search engines like google like Perplexity into Safari, shaking up its $20 billion cope with Google.
- Google faces rising stress as Apple explores AI-powered search instruments amid declining Safari searches.
- With AI search engines like google gaining traction, Google’s dominance within the search market might be in danger.
Google shares took a nosedive, shedding over 6% on Wednesday, after Apple’s senior VP of providers, Eddy Cue, hinted that the tech large is toying with the thought of integrating AI search engines like google like Perplexity into its default Safari browser. The revelation, as reported by Bloomberg, surfaced throughout Google guardian Alphabet’s ongoing antitrust trial.
Final 12 months, a federal choose dominated that Google’s search enterprise operated as an unlawful monopoly. Amid the trial, it got here to gentle that Google shells out a staggering $20 billion yearly to maintain its search engine because the default possibility on Safari — a candy deal that Apple is now rethinking.
Alphabet Inc. (GOOG) – A Sharp Decline
Cue’s testimony dropped one other bombshell: for the primary time final month, Apple observed a dip in search queries by means of Safari. Why? Shoppers are more and more gravitating towards AI-powered search instruments. Apple’s already received ChatGPT as a part of its Apple Intelligence platform, however the firm’s trying to broaden its AI repertoire.
Cue made it clear that Apple isn’t about to toss Google apart anytime quickly. The $20 billion payout is a big chunk of Apple’s Companies income, which hit $96.1 billion in 2024. But, he additionally hinted that AI search apps may ultimately supplant standard search engines like google.
Google’s AI Scramble
With Apple probably opening the door to AI search engines like google, Google’s scrambling to maintain its edge. The search titan has already rolled out AI Overviews — generative AI summaries for search queries — and is at present trialing its AI Mode, a characteristic that mimics AI-centric search apps like ChatGPT and Perplexity.
Additionally within the combine is Gemini, Google’s personal AI search various. It’s not baked into normal Google Search however stands as a separate AI-powered possibility. In the meantime, Microsoft isn’t sitting idly by. It’s pushing its personal AI search characteristic, Copilot, in a bid to snag customers on the lookout for smarter search options.
The Apple-Google Income Tango
Apple’s not simply enjoying with AI for enjoyable — the $20 billion from Google is a crucial income stream. That sum contributes closely to Apple’s Companies enterprise, a phase that hauled in $96.1 billion final 12 months.
However Google’s exclusivity cope with Apple isn’t the one one in its arsenal. It’s additionally inked agreements with Samsung, guaranteeing its search engine and apps stay entrance and middle on Android gadgets.
For now, Google’s grip on the search market stays intact. However as AI search engines like google acquire traction, the bottom beneath the tech behemoth might not be as stable because it as soon as appeared.