From Yahoo Finance: 2025-05-07 12:02:00

Apple plans to add AI-powered search options to Safari, posing a threat to Google. Shares of Google-parent Alphabet fell 7.3%, losing $150 billion in market value. Apple executive Eddy Cue stated Safari searches decreased due to AI usage. Google claims growth in search queries despite the shift.

Apple’s move signals a shift in search, impacting Google’s advertising business. Apple’s Safari browser currently defaults to Google search, generating $20 billion annually for Google. U.S. antitrust regulators are targeting Google’s dominance, proposing remedies like banning exclusivity agreements with Apple. Analysts predict severe consequences for Google.

Google is fighting back in the AI race, introducing AI features to retain users. The company has expanded AI Overviews and added ads to boost Search ad sales. CEO Sundar Pichai aims to include Gemini AI technology on new Apple devices. Apple plans to add AI search providers like OpenAI and Perplexity AI.

The battle between Google and Apple highlights the importance of default search agreements. Google’s efforts to stay competitive show the significance of retaining users. The rise of generative search sites like ChatGPT and Perplexity poses a challenge to Google’s dominance. ChatGPT has over 400 million weekly active users.



Read more at Yahoo Finance: Apple’s plan to offer AI search options on Safari a blow to Google dominance