With a potential blow to Google, Apple is exploring plans to rebuild Safari by adding an AI-powered search engine, Bloomberg reported Wednesday. The move could potentially reduce Google’s grip in searches, especially on mobile devices that pay billions of dollars to remain the default option.
“Apple Inc. is “actively considering” the Safari web browser on its devices and focuses on AI-powered search engines. This is a shift in the industry’s earthquakes rushed by the potential end of a long-standing partnership with Google,” Bloomberg reported.
Apple Eyes jumps to AI search and ending ERA defined by Google
Top executive Apple’s Eddy Cue was shared last month in testimony in the US Department of Justice’s antitrust case against Google’s parent Alphabet searching for search activities in Safari. Cue noted that there is an increasing number of users shifting towards AI-based tools instead.
Google currently pays Apple about $20 billion a year, staying in the front and center of Safari, where you can access to tons of search traffic and ad dollars. According to analysts, the transaction alone represents an estimated 36% of Google’s search ad revenue.
Losing that placement is a big blow, especially as Google faces pressure from AI competitors like Openai and Prperxity. Apple has already partnered with Openai to integrate ChatGpt with Siri, and Google reportedly is competing to secure deals by the year to bring Gemini AI to Apple devices.
The stock market has attracted attention. Alphabet’s stock fell 6%, while Apple’s stock fell about 2% after the report was released. None of the companies involved responded to Reuters’ request for comment, and none of the companies involved were involved.
Cue reportedly told Bloomberg that AI tools such as Openai and Prplexity AI would eventually replace traditional search engines like Google. He doesn’t expect it to become a default option anytime soon, but “We’ll add them to the list, and it’s probably not the default,” he said.
Meanwhile, Google has recently tried to reassure investors that AI investments are driving strong advertising profits. That first quarter outcome beat expectations, but changes in Apple’s loyalty could have long-term outcomes.
“The loss of Apple’s exclusiveness should have very serious consequences for Google, without further action,” said Gil Luria, an analyst at Da Davidson.
“Many advertisers have all their search ads on Google, because they are actually monopoly with almost 90% share. With other viable alternatives for search, many advertisers can move a lot of advertising budgets from Google to other venues.”
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