Apple is reportedly exploring the integration of AI-powered search engines into its Safari web browser, according to Bloomberg News. This move could potentially disrupt Google’s stronghold on the search engine market, particularly as it relates to Safari users.
The development surfaced during Eddy Cue’s testimony in the U.S. Justice Department’s antitrust case against Alphabet, Google’s parent company. Cue revealed that Safari’s search traffic declined for the first time recently—a trend he attributes to users increasingly favoring AI-driven search alternatives.
Currently, Google holds the default search engine status on Safari, a position it reportedly pays Apple around $20 billion annually to maintain. Analysts estimate this represents about 36% of Google’s search ad revenue from Safari. Losing this spot could severely impact Google’s revenue, especially as it already faces rising competition from AI startups like OpenAI and Perplexity AI.
Google pays Apple to make Google Search the default option on Safari, but that could soon change.
Apple has already partnered with OpenAI to offer ChatGPT integration in Siri, while Google is pursuing an agreement to include its Gemini AI in future Apple products. Despite this, Cue noted that while Apple intends to add other AI search providers to Safari, they likely won’t become the default search engine—at least not initially.
The announcement had immediate market consequences: Alphabet shares dropped 6%, and Apple’s stock fell by about 2%. Neither company nor the Department of Justice has issued an official comment.
Industry experts believe this move could mark a major turning point in the search engine landscape. Analyst Gil Luria of D.A. Davidson warned that if Google loses its exclusive position on Apple devices, it could face “very severe consequences.” He also noted that Google’s near 90% market share in search is largely sustained by advertiser loyalty to its dominant position. The emergence of credible AI-powered search alternatives could shift advertiser spending toward competing platforms.
This shift underscores a broader industry trend: as AI becomes more integrated into everyday digital experiences, traditional search models may be redefined, potentially altering the competitive dynamics between tech giants.
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