Google Stock Declines as Apple Investigates AI-Enhanced Search for Safari


The U.S. Department of Justice has initiated a lawsuit against Google (or its parent company, Alphabet Inc.), and during legal discussions, Apple’s Senior Vice President of Services, Eddy Cue, made a notable announcement: Apple is currently “actively exploring” the incorporation of AI-driven search into its Safari browser, which may indicate a shift away from Google Search.

According to a report by Bloomberg, this declaration could herald a significant upheaval in the tech sector. Despite Safari commanding only 18% of the worldwide browser market, Apple’s possible departure from Google highlights a more extensive transition that could challenge one of the internet’s most embedded foundations — Google’s supremacy in search.

The impact on Alphabet’s stock was apparent, plummeting 7.5% within a day.

Why AI Search Is Revolutionary

Increasingly, users are opting for AI chatbots like ChatGPT for their search requirements. Just today, AI startup Anthropic introduced a new API aimed at improving the search functionalities of its Claude AI models. OpenAI, the organization behind ChatGPT, has also been encroaching on Google’s domain, initially with the introduction of ChatGPT Search in October 2024, and more recently with innovative shopping tools that replicate conventional search engine features.

Now, it seems that Apple is preparing to participate in the AI search trend. Given the extensive usage of iPhones, any alteration in Apple’s search approach could have significant repercussions for how individuals seek information online.

Apple’s potential transition also brings financial implications. The Justice Department’s lawsuit has highlighted the approximate $20 billion Google compensates Apple yearly to maintain its status as the default search engine on Safari. In his statements, Cue defended this profitable relationship but also recognized that the emergence of AI search could inevitably diminish Google’s superiority.

Nevertheless, there’s still some positive news for Google.

The tech behemoth’s Gemini AI model has recently achieved top rankings across multiple AI performance evaluations, largely due to Google’s extensive data assets. Google is also advancing its own AI search projects, including the deployment of AI Overviews and the beta introduction of AI Mode — a chatbot-like search interface.

One thing is certain: the realm of online search is witnessing a significant evolution. The rule of conventional search engines such as Google may be diminishing, as AI-enhanced tools ascend to fill the void.

Disclosure: Mashable is owned by Ziff Davis, which in April lodged a lawsuit against OpenAI, claiming copyright infringement in the training and functioning of its AI models.