Apple readies AI search options inside Safari
Apple is reportedly planning to integrate AI-powered search options from providers like OpenAI and Perplexity AI into its Safari browser, according to testimony from Apple executive Eddy Cue during an antitrust case against Google. This development could reduce Google's dominant position as the default search engine on Apple devices, a position for which Google currently pays Apple an estimated $20 billion annually. Cue also noted a recent decline in Safari searches, partially attributed to users shifting to AI search services.
Key Takeaways
- Eddy Cue said Apple is "actively looking at" reshaping Safari around AI search options.
- Reuters reported Apple may add OpenAI and Perplexity AI as search choices in Safari.
- Cue said Safari searches fell for the first time last month, citing users shifting to AI.
- Google pays Apple roughly $20 billion a year to remain Safari’s default search engine.
- Alphabet shares fell 7.3% after the report, wiping off roughly $150 billion in market value.
Why It Matters
If Apple adds AI search providers to Safari, Google’s default placement on iPhone traffic gets less secure right away. That matters because Google’s Safari deal is worth roughly $20 billion a year and sits alongside the search ads that depend on Apple devices. The broader shift is already visible in Cue’s testimony: Safari searches fell last month as users moved to AI, while Google is trying to defend with AI Mode, AI Overviews, and a possible Gemini deal with Apple. Watch for any filing or testimony that clarifies whether Apple actually changes Safari’s search defaults or just adds new options.
Read full article at reuters.com
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