Apple is preparing a major shake-up in the world of web search—one that could upend the current balance of power and cause lasting tremors across the digital advertising landscape. During a pivotal testimony at Google’s antitrust trial this week, Apple’s Senior Vice President of Services, Eddy Cue, revealed that the company is “actively looking” to integrate AI-powered search options into its Safari browser, a move that may eventually displace Google as the default search engine on iPhones.
The news sent shockwaves through Silicon Valley. Alphabet Inc., Google’s parent company, saw its shares drop by 7.3%, erasing about $150 billion from its market value in a single day. Apple’s stock also slipped slightly, falling by 1.1%.
A Turning Point in Search
For over a decade, Google has enjoyed a deeply entrenched—and lucrative—partnership with Apple, paying around $20 billion annually to remain the default search engine on Safari. Analysts estimate that this represents roughly 36% of the search advertising revenue Google generates through Safari. The partnership has long been a pillar of Google’s dominance, helping it capture nearly 90% of the global search market.
But Cue’s comments signal that this could soon change. Speaking at the trial, he noted that searches within Safari had declined for the first time in 22 years, citing the growing popularity of AI-powered alternatives like ChatGPT and Perplexity. While Google insists that its total number of queries continues to rise—including from Apple devices—Cue’s remarks underscore an important shift: users are increasingly bypassing traditional search engines in favor of AI-driven, conversational tools.
Apple Eyes OpenAI, Perplexity, and Anthropic
To keep up with this shift, Apple is in active discussions with OpenAI, Perplexity AI, and Anthropic about integrating their AI-powered search capabilities into Safari. While Cue clarified that these providers won’t become the default “yet,” they are expected to be included as official options within Safari by the end of the year.
This move could ultimately offer users the choice to route searches through AI models capable of summarizing results, offering personalized responses, and navigating complex queries—features that are fast becoming standard among new-generation search tools.
A Seismic Threat to Google’s Empire
Apple’s pivot could not come at a worse time for Google. The U.S. Department of Justice has filed two major lawsuits accusing the company of monopolistic practices in search and advertising. One of the proposed remedies? Banning Google from paying companies like Apple to be the default search engine.
As D.A. Davidson analyst Gil Luria put it, “The loss of exclusivity at Apple should have very severe consequences for Google, even if there are no further measures.” Advertisers—many of whom funnel the bulk of their budgets into Google due to its monopoly—could begin shifting spend elsewhere if viable AI search alternatives emerge.
Google Isn’t Standing Still
Despite the threat, Google is fighting back. It recently rolled out an “AI Mode” for its search page and expanded its AI Overviews feature to more than 100 countries. These summaries appear above the usual list of web links, integrating generative responses into search results. The company has also added advertising formats to these AI summaries to maintain revenue flow.
Additionally, Google is seeking to include its Gemini AI model on upcoming Apple devices. CEO Sundar Pichai testified that the company is negotiating an agreement with Apple to this effect, hoping to strengthen its position amid rising competition.
AI Search Is Becoming Mainstream
ChatGPT itself has become a force to reckon with in search. As of April, OpenAI reported over 1 billion weekly searches through its AI-powered platform, with more than 400 million weekly active users. Perplexity AI and Anthropic are also scaling rapidly, making AI-powered search one of the fastest-moving segments in tech.
As Yory Wurmser, principal analyst at eMarketer, noted, “This shows how far generative search sites, such as ChatGPT and Perplexity, have come.”
The Road Ahead
Apple’s planned AI integration is more than a technological update—it represents a strategic realignment in how users find and interact with information. If successful, it could significantly erode Google’s dominance and open the door for a more decentralized, AI-enhanced search landscape.
For Google, the challenge is clear: innovate or risk becoming less relevant in the very space it helped create. For Apple, it’s a chance to reshape the future of search—on its own terms.
