In a significant shift within the tech landscape, Apple has announced plans to integrate artificial intelligence (AI) search tools from OpenAI and Perplexity into its Safari browser. This development, revealed during an anti-monopoly hearing in the U.S. on May 7, 2025, signals a potential challenge to Google's longstanding dominance as the default search engine on Apple devices.
According to Reuters, Apple's Senior Vice President Eddy Cue disclosed that Safari experienced a decline in search volume for the first time in April, attributing this trend to users increasingly turning to AI-driven search alternatives. Cue stated, "We will add AI search tools as options in the Safari browser in the future." This move comes at a time when OpenAI's ChatGPT has been making waves, achieving over 1 billion web searches per week and boasting more than 400 million weekly active users as of February 2025.
The implications of Apple's decision are significant. Google, which pays Apple approximately $20 billion annually to maintain its default search engine status on Safari, could face severe repercussions. Analysts estimate that this payment represents about 36% of Google's search advertising revenue generated from Safari. Following the announcement, Alphabet's stock, Google's parent company, plummeted by 7.3%, wiping out around $150 billion in market capitalization.
While Apple is positioning itself to embrace AI technology, Google remains confident in its search capabilities. The tech giant released a statement asserting that it continues to see growth in total search queries, including those from Apple devices. Google emphasized the importance of features such as voice and image search in driving overall query traffic, suggesting that their search ecosystem remains robust.
However, experts are viewing this shift as a critical juncture in the search market. Gil Luria, an analyst at D.A. Davidson, remarked, "Losing the default position on Apple devices will be a significant shock for Google, even without additional interventions. If viable alternatives emerge, advertising budgets could shift substantially away from Google."
In response to the growing competition, Google has introduced an "AI mode" on its search platform, expanding its AI Overview feature to over 100 countries. CEO Sundar Pichai, during a recent testimony in the anti-monopoly hearing, mentioned that Google is in discussions with Apple to integrate its Gemini AI technology into upcoming iPhone models, a strategy aimed at reinforcing Google's presence within Apple's ecosystem.
As Apple moves forward with its plans to incorporate AI search options, the tech landscape is poised for a transformation. The integration of AI tools like those from OpenAI and Perplexity into Safari could redefine user experiences and challenge the traditional search paradigm. Analysts note that AI content generation tools, such as ChatGPT, are emerging as legitimate competitors to conventional search engines.
OpenAI's recent announcement about its web search feature highlights its growing influence, with the platform now achieving over 1 billion searches weekly. This impressive figure indicates the scale of competition that Google must contend with as AI technology becomes increasingly central to online search.
In summary, Apple's strategic pivot towards AI-integrated search options signals a new era in the search engine landscape. As users gravitate towards AI tools, the implications for established players like Google could be profound, potentially reshaping advertising strategies and user engagement in the digital age.
