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.

As the AI-driven search race heats up, it’s clear that the battle for the future of search is just beginning. Stay tuned to see how this plays out.

Source: CNN – Apple looks to add AI search to Safari in potential blow for Google

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A Chinese AI startup called DeepSeek has made a dramatic entrance into the tech industry with its powerful and efficient AI model, DeepSeek R1. This breakthrough is shaking the industry and has caught the attention of investors and tech giants worldwide, including Wall Street.

The DeepSeek Revolution: What Makes It Special?

DeepSeek, founded just a year ago, has introduced an AI model that rivals the capabilities of major players like OpenAI’s GPT-4, Meta’s Llama, and Google’s Gemini, but at a fraction of the cost. This revelation has sent shockwaves through the tech industry, particularly given that DeepSeek claims to have spent only $5.6 million to develop its base AI model—an amount far smaller than the hundreds of millions (or billions) that U.S. companies invest in similar technologies. What’s even more surprising is that this breakthrough was achieved using relatively underpowered AI chips, despite U.S. efforts to limit China’s access to high-performance AI hardware.

DeepSeek’s Origins

Founded by Liang Wenfeng, a Chinese hedge fund manager, in late 2023, DeepSeek is part of the growing wave of AI startups aiming to capitalize on the booming AI sector. Liang has been compared to Silicon Valley’s Sam Altman, the CEO of OpenAI, for his role in championing AI technology and attracting investment.

While DeepSeek’s earlier models, like V3, caught some attention, they were overshadowed by concerns over content restrictions on sensitive topics, particularly those related to the Chinese government. However, R1, released late last year, has turned heads with its open-source nature and ability to provide high-level AI capabilities at an incredibly low cost. The DeepSeek app surged in popularity, even surpassing ChatGPT on app store charts, and has already been downloaded nearly 2 million times.

Why Is DeepSeek Such a Big Deal?

The AI industry is notorious for being power-hungry and costly, with major companies spending billions to support the infrastructure and resources needed to run these technologies. For example, Meta has committed to spending $65 billion this year on AI development, while OpenAI CEO Sam Altman has stated that the industry will require trillions of dollars in investment to meet growing demands for powerful chips and data centers.

DeepSeek’s R1 model challenges this narrative by achieving similar capabilities to the biggest names in AI for a fraction of the cost. The implications are profound: If DeepSeek can deliver cutting-edge AI at a fraction of the price and on less capable chips, it opens up new possibilities in AI development—both in terms of cost efficiency and scalability. This could lead to more global players entering the AI space and disrupt the traditional power dynamics.

Marc Andreessen, the renowned tech investor, called DeepSeek’s achievement “one of the most amazing and impressive breakthroughs I’ve ever seen,” describing it as “AI’s Sputnik moment,” a reference to the 1957 launch of the Soviet satellite that marked the start of the space race.

What Does This Mean for America?

For years, the United States has used export restrictions on advanced AI chips to maintain its dominance in the AI sector, with former President Joe Biden tightening these measures just before leaving office. However, DeepSeek’s breakthrough raises questions about the effectiveness of these restrictions. Despite the U.S. efforts, DeepSeek has shown that the lack of access to top-tier technology does not necessarily mean a country can be left behind in the AI race.

Wall Street reacted to DeepSeek’s rise with alarm. Stocks in leading tech companies like Nvidia, Meta, and Alphabet all saw sharp declines as investors began questioning the high costs of AI development. The market was rattled by the idea that a relatively unknown Chinese startup could potentially disrupt the established American tech giants.

Is DeepSeek’s Breakthrough Really a Game-Changer?

While the industry is taking DeepSeek’s word about its low-cost development, the true extent of its success is still being scrutinized. Some industry experts note that the company has not disclosed its training costs or the full expenses related to research and development, leaving some questions about the financial model behind the breakthrough.

Moreover, while DeepSeek’s R1 model may be a ChatGPT competitor, it is still a consumer-focused large language model. Its ability to handle the more complex AI demands of industries, which require massive infrastructure investments, remains unproven.

Despite these uncertainties, U.S. companies still dominate in terms of resources, talent, and infrastructure. Giuseppe Sette, President of Reflexivity, a market research firm, emphasized that America remains the most promising hub for the emergence of advanced, self-improving AI technologies.

The Road Ahead for AI

DeepSeek’s rise signals that AI development is not solely dependent on the largest companies with the deepest pockets. As the AI landscape continues to evolve, the model set by startups like DeepSeek may challenge the way the industry views costs and capabilities.

For now, the question remains: Will DeepSeek continue to disrupt the status quo, or is this just one stunning breakthrough among many yet to come? One thing is clear: the tech world is watching closely, and AI’s future may not be as certain as once thought.

Source

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In a bold move, Perplexity AI has submitted a new proposal to TikTok’s parent company, ByteDance, offering a plan that would allow the U.S. government to own up to 50% of a newly-formed entity merging Perplexity with TikTok’s U.S. operations. This proposal, presented last week, revises a previous plan Perplexity submitted on January 18—just a day before the law banning TikTok in the U.S. took effect.

The Proposal: A Shift Toward U.S. Control

The latest plan aims to create a structure that would merge San Francisco-based Perplexity with TikTok’s U.S. business. It suggests that the U.S. government could own a significant stake in the new entity once it goes public, with an initial offering estimated at a minimum of $300 billion. However, the U.S. government’s shares would not carry voting rights, and it would not have a seat on the company’s board.

This proposal is a response to feedback from the Trump administration, according to an anonymous source familiar with the matter. Perplexity’s updated plan allows ByteDance to retain a stake in TikTok, while also meeting U.S. concerns about control over the platform’s operations.

ByteDance’s Role in the Deal

Under the proposal, ByteDance would not be required to sever all ties with TikTok, which would benefit its investors. However, the plan stipulates that ByteDance must allow “full U.S. board control.” This would provide U.S. officials with oversight, ensuring that the app’s operations comply with U.S. interests.

Notably, ByteDance would contribute TikTok’s U.S. business, excluding the proprietary algorithm that drives the app’s content recommendations. This move echoes a suggestion made by Steven Mnuchin, Treasury Secretary during Trump’s first term, who discussed the idea of diluting Chinese ownership to satisfy U.S. security concerns. Mnuchin had previously shown interest in investing in TikTok, emphasizing the need to disconnect the technology from China.

A Potential Solution to U.S. Security Concerns

This proposal is part of a broader discussion around TikTok’s ownership and national security. The U.S. government has raised alarms about the potential risks posed by ByteDance’s control over the app’s algorithm and the vast amount of data it collects from American users. While there’s been no concrete evidence that TikTok has shared data with Chinese authorities or allowed interference in its algorithm, the Biden administration has expressed ongoing concerns.

The Growing Interest in TikTok’s Future

As talks surrounding TikTok’s future intensify, several investors are showing strong interest in the platform. President Trump recently stated that a deal could materialize within 30 days. He mentioned receiving interest from “substantial people” and stressed that the U.S. would need to benefit from any deal made.

Trump also addressed rumors about Larry Ellison, CEO of Oracle, potentially leading a bid for TikTok’s global operations. While Trump confirmed that he had not discussed a deal with Ellison, he noted that many other parties were involved in negotiations.

TikTok’s Ban and Legal Challenges

The U.S. government had passed a bipartisan law in 2024 mandating TikTok’s ban unless it severed ties with ByteDance. Though the Supreme Court upheld the law, Trump issued an executive order to pause enforcement for 75 days, providing additional time for negotiations.

TikTok briefly shut down in the U.S. last week but resumed operations after Trump intervened. Notably, Trump had previously tried to ban TikTok during his first term, but he reversed his stance, crediting the platform for helping him connect with younger voters in the 2024 election.

Looking Ahead

As negotiations continue, the future of TikTok remains uncertain. With mounting concerns over national security and ongoing discussions about ownership restructuring, the platform’s fate could hinge on upcoming proposals like Perplexity AI’s. How ByteDance responds—and whether the U.S. government takes a more active role in overseeing the company—will be pivotal in determining TikTok’s future in the U.S.

Source

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YouTube and TikTok star MrBeast, whose real name is Jimmy Donaldson, has officially entered the race to buy TikTok, leading a group of investors. This move comes as the social media platform faces a 75-day deadline to secure a non-Chinese owner or risk a permanent ban in the U.S.

On January 13th, Donaldson posted a lighthearted message on X, saying, “Okay fine, I’ll buy TikTok so it doesn’t get banned.” While his tone was playful, his lawyer confirmed to CNN that Donaldson was serious about the bid. As the most popular YouTuber and third-most popular TikToker, Donaldson’s involvement has added a new twist to the ongoing TikTok saga.

A Rapid Turn of Events for TikTok

TikTok’s future has been in jeopardy for weeks, with legal battles and political pressure mounting. On Saturday night, the app temporarily went dark as a nationwide ban appeared imminent. However, after President Donald Trump announced he would sign an executive order delaying the ban by 75 days, TikTok was back online within 12 hours.

Just two days after his post on X, Donaldson shared a TikTok video, revealing that he had “just gotten out of a meeting with a bunch of billionaires” and was serious about purchasing the platform. “TikTok, we mean business,” Donaldson declared, introducing his lawyer and confirming that an offer was on the table.

The Bid: A Serious Attempt to Keep TikTok Alive

Donaldson’s bid is a direct response to a recent Supreme Court ruling, which upheld a federal law banning TikTok unless ByteDance, the app’s Chinese parent company, sells the platform to a non-China-based company. This ruling has left TikTok in a race against time.

Leading the investment group is Jesse Tinsley, CEO of Employer.com, who is joined by “institutional investors and high-net-worth individuals” determined to save TikTok from being shut down. According to the group, the proposal would not disrupt TikTok’s operations, ensuring continuity for its 170 million American users.

Tinsley emphasized, “Our offer represents a win-win solution that preserves this vital platform while addressing legitimate national security concerns.” However, the bid’s financial details have not been disclosed.

A Looming Deadline for TikTok

Talk of selling TikTok to a U.S.-based company has been circulating since 2020 when President Trump first issued an executive order attempting to ban the app. Last week, after the Supreme Court upheld the federal law, TikTok faced a tough decision: either sell to a new buyer or risk being shut down.

Over the weekend, TikTok displayed a message indicating the ban was imminent. “Sorry, TikTok isn’t available right now,” it read. However, Trump’s executive order signed on Monday extended the ban’s enforcement for 75 days, providing temporary relief but not a permanent solution. To avoid a permanent shutdown, ByteDance would need to find a buyer, or Congress could pass a new law to overturn the ban—a highly unlikely scenario given the bipartisan support for the current legislation.

Other Bids and Potential Buyers

MrBeast is not the only one interested in acquiring TikTok. Reports have surfaced that Chinese officials have considered selling a portion of the app to tech mogul Elon Musk, though neither ByteDance nor Musk has commented on the rumors.

Additionally, “The People’s Bid for TikTok,” a group that includes Shark Tank’s Kevin O’Leary and billionaire Frank McCourt, has also made an offer to buy the platform. This group, backed by Guggenheim Securities and Tim Berners-Lee, the inventor of the World Wide Web, is also eager to prevent TikTok’s disappearance.

TikTok’s U.S. assets, excluding its valuable algorithm, are estimated to be worth between $40 billion and $50 billion, according to Wedbush Securities analyst Dan Ives. However, the true value of TikTok lies largely in its algorithm, making it difficult to put an exact price tag on the company.

McCourt’s group has not disclosed their offer publicly but has indicated that they value the assets at around $20 billion. O’Leary and McCourt’s group stated, “We will refrain from publicly sharing the financial specifics of our offer until ByteDance is in a position to review our proposal.”

The Race Against Time

With the clock ticking, TikTok is facing a pivotal moment. Whether it’s MrBeast and his group of investors, Elon Musk, or another bidder, one thing is clear: TikTok’s fate hangs in the balance. As more offers flood in, the platform’s future will ultimately depend on whether a deal can be reached before the 75-day deadline expires.

Source

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