In a striking revelation during an antitrust trial against Google, Eddy Cue, Apple's Senior Vice President of Services, disclosed that Google searches on Safari browsers saw a decrease for the first time in 22 years in April 2025. Cue expressed his concerns about the implications of this decline, stating, "I lose sleep thinking about the prospect of Apple losing revenue from Google Search." This revenue, part of a lucrative contract worth approximately $20 billion annually, hinges on Google being the default search engine on Safari, making any drop in search volume a significant warning for both tech giants.
The decline in Google searches is largely attributed to the increasing popularity of AI chatbots such as ChatGPT, Perplexity, Gemini, and Microsoft Copilot. These tools have become a convenient alternative for users, allowing them to seek answers directly from AI rather than relying on traditional search methods. Cue's remarks highlight a pivotal shift in user behavior, suggesting that the conventional way of searching for information is beginning to falter.
In response to this trend, Google has introduced its AI Mode, aiming to retain its competitive edge. However, Pandu Nayak, Vice President of Google Search, acknowledged the uncertainty surrounding the reversal of this trend, stating, "We cannot guarantee that this trend will reverse soon." For years, Google has been viewed as the primary gateway to the internet, but with the rise of AI, this gateway seems to be evolving into a faster, smarter, and less controllable shortcut.
According to a report by Reuters, Apple is actively planning to incorporate AI search options, including those from OpenAI and Perplexity, into its Safari browser. This strategic move is expected to shake the long-standing dominance of Google as the default search engine on Apple devices. Following the news, Alphabet's stock plummeted by 7.3%, resulting in a market capitalization loss of around $150 billion, while Apple's stock also saw a slight decrease of 1.1%.
During the antitrust trial, Cue confirmed that Apple is considering redesigning Safari to integrate these AI search tools. He noted that the search volume via Safari has decreased as users increasingly turn to AI-driven search options. Meanwhile, Google maintains that total searches across its ecosystem, including those from Apple devices, continue to grow. The company highlights features like voice and image search as key drivers of overall query traffic.
Despite Google's assertions, analysts view the changes in user behavior, as highlighted by Apple, as indicative of a new competitive phase in the search market, where AI technology plays an increasingly central role in the search experience. Currently, Google pays approximately $20 billion each year to maintain its status as the default search engine on Safari, which represents about 36% of its search advertising revenue derived from this platform.
Proposals from the U.S. Department of Justice to ban Google from paying for its default search engine status could further disrupt Google’s dominance in online search. Should this proposal be enacted, combined with the rapid development of alternative AI search tools, Google might lose a competitive advantage long considered unassailable.
Analyst Gil Luria from DA Davidson remarked, "Losing the default position on Apple would be a huge shock for Google, even without other intervention measures. If viable alternatives emerge, advertising budgets could shift significantly away from Google." In a bid to adapt, Google has rolled out its AI mode across more than 100 countries and is negotiating with Apple to integrate its Gemini AI technology into new iPhone models set to launch this year.
In a further indication of the shifting landscape, OpenAI has reported that its web search feature now achieves over 1 billion searches each week, boasting 400 million weekly active users. This impressive figure underscores the growing competition Google faces from AI-driven search alternatives. As the battle for search supremacy intensifies, the traditional search engine model is being challenged like never before.
As Eddy Cue's testimony highlights, the tech industry is witnessing a significant technological shift with AI at its forefront. Apple’s potential move to incorporate various AI search options directly into Safari illustrates the company's commitment to adapting to changing user preferences. This could fundamentally alter the relationship between Apple and Google, shaking the foundations of the search engine market.
With AI tools becoming more prevalent, the question remains: can traditional search engines like Google maintain their relevance in an era where user habits are changing so rapidly? As the landscape evolves, both companies will need to navigate these challenges carefully to retain their market positions and revenue streams.
As this story unfolds, the implications for both Apple and Google are profound. The outcome of the antitrust trial and the strategic decisions made by both companies in response to the rise of AI will undoubtedly shape the future of online search and the broader tech landscape.
