In a dramatic turn of events in the tech world, Apple has claimed that Google is facing a significant challenge due to the rise of artificial intelligence (AI) tools, particularly ChatGPT. This assertion was made by Eddy Cue, Apple’s Senior Vice President, during an antitrust hearing on April 7, 2025. Cue stated that search volume on Safari has decreased for the first time in over 20 years, attributing this drop to users increasingly turning to AI services.
The news sent shockwaves through the market, leading to a sharp decline in Alphabet’s stock, which fell over 8% following Cue’s comments, erasing approximately $250 billion from the company’s market capitalization. This decline indicates a growing concern among investors regarding Google’s long-held dominance in the search engine market, a position it has maintained for more than two decades.
Just 24 hours after Apple’s announcement, Google responded, insisting that the total number of queries from Apple devices and platforms is still on the rise. However, the tech giant notably avoided mentioning Safari, which raised eyebrows among analysts. The key terms in Google’s response were “total,” “devices,” and “platforms,” but the omission of Safari suggested a potential acknowledgment of changing user behavior.
Analysts are quick to point out that while Safari search volume may be decreasing, iPhone users are likely shifting their search habits to the dedicated Google app or the Chrome browser. This shift does not necessarily mean that Google is losing users; rather, it reflects a broader change in how users are accessing search services. If users become accustomed to utilizing various tools, including competitors like ChatGPT, it could lead to lasting changes in search behavior.
Some industry experts speculate that Apple’s remarks were not merely a reaction to the antitrust case but a strategic move to undermine Google’s monopoly. Apple reportedly receives $20 billion annually from Google for setting the latter as the default search engine on Safari. If the courts determine that Google’s dominance is waning due to competition from AI, this lucrative financial arrangement could continue without legal repercussions.
As Google navigates this tumultuous landscape, it finds itself in a precarious position. The company must reassure investors of its strength while also avoiding the appearance of being too powerful, especially with ongoing antitrust scrutiny. The question looms: Is Google genuinely at risk from AI tools like ChatGPT, or is it merely adapting to a new era of search?
In a related development, on May 7, 2025, Eddy Cue reiterated during another hearing that Google search volume via Safari had decreased over the past two months, marking a notable shift in user behavior. Cue attributed this decline to the increasing popularity of AI services such as ChatGPT and Perplexity, further emphasizing the changing dynamics in the tech landscape.
Following this announcement, Alphabet’s stock plummeted by over 7%, wiping out approximately $250 billion in market value. Apple’s stock also took a hit, dropping more than 1%, as the decline in Safari search volume directly impacts the annual payment Google makes to Apple. The figure stands at $20 billion, underscoring the financial stakes involved in this competitive landscape.
According to Statcounter, Google currently holds 89.7% of the global search market share, while Microsoft’s Bing accounts for a mere 3.9%. This substantial lead has been shrinking, however, as Google’s market share has dipped from 93% at the end of 2022, coinciding with the launch of ChatGPT. The decline below the 90% threshold has not been seen in a decade, highlighting the potential vulnerabilities Google faces amid evolving technologies.
OpenAI reports that around 400 million users engage with ChatGPT weekly, indicating a significant shift in how people seek information. Despite Google’s continued dominance, the rise of AI-driven search tools poses a new challenge that could reshape the industry.
Analysts from MoffettNathanson have pointed out that most queries on AI chatbots do not carry commercial intent, which raises questions about the long-term implications for Google’s advertising revenue. The company's stock has decreased by nearly 12% over the past year, reflecting Wall Street’s waning confidence in Alphabet’s financial strength.
As the competition heats up, Google finds itself in a precarious position. The looming threat of being outpaced by emerging technologies, coupled with the risk of being forced to break up due to antitrust pressures, creates a complex and uncertain future for the search giant. The landscape is shifting, and how Google adapts to these changes will be crucial in determining its long-term viability in the market.
In conclusion, the rivalry between Apple and Google has reached a pivotal moment, with both companies navigating the challenges posed by AI and changing user preferences. As the tech industry evolves, the answers to these questions will shape the future of search and the relationships between these two giants.
