Apple to Add AI Search Options, Potentially Dimming Google’s Safari Deal

Apple is reportedly exploring a major shift in how it handles search on its Safari web browser, potentially bringing AI-powered search engines into the mix. This move could pose a significant challenge to Google’s longstanding dominance in the search market.

According to Bloomberg News, Apple executive Eddy Cue testified during the U.S. Justice Department’s antitrust case against Alphabet that Safari search traffic recently dropped for the first time. He attributed this decline to more users turning to AI-powered search engines, signaling a potential turning point for traditional search methods.

Currently, Google holds the default search engine position on Safari—a highly sought-after spot that comes with a hefty price tag. It’s estimated that Google pays Apple around \$20 billion annually for this privilege, which represents about 36% of Google’s search advertising revenue through Safari. However, if Apple shifts its focus to AI-powered alternatives, it could significantly impact Google’s bottom line.

This news comes at a time when Google is already facing increased competition from AI-focused startups like OpenAI and Perplexity. Apple has partnered with OpenAI to integrate ChatGPT into Siri, and Google is scrambling to secure a deal with Apple to embed its Gemini AI technology into the latest Apple devices.

Apple’s potential move could further shake up Google’s dominance, with some analysts predicting serious consequences. D.A. Davidson analyst Gil Luria warned that if Apple moves away from Google as its default search engine, it could result in a massive shift in advertising budgets. Advertisers, many of whom currently rely solely on Google’s search advertising platform, might divert their ad dollars to other viable search alternatives.

While Cue confirmed that Apple plans to include AI-driven search engines, such as OpenAI and Perplexity, as options in Safari, he emphasized that they likely won’t be the default search engines—at least not initially. The introduction of AI search engines could provide users with more choices, potentially changing the landscape of online search.

Google, which has long held an almost monopolistic share of the search market (around 90%), faces an uncertain future if alternatives become mainstream. As tech investors are closely watching these developments, the next steps could reshape how we search and how advertisers spend their marketing budgets.

Both Apple and Google saw their stock prices dip following the news—Alphabet shares dropped 6%, while Apple’s decreased by about 2%. Neither company, nor the Justice Department, responded to requests for comment at the time of the report.