Overview

• Apple executive Eddy Cue revealed during testimony in Google's antitrust trial that Safari searches fell for the first time in April, attributed to users turning to AI alternatives.
• Cue stated Apple is actively evaluating AI search providers like OpenAI, Perplexity, and Anthropic, though they are unlikely to become the default search option initially.
• Google currently pays Apple approximately $20 billion annually to remain Safari’s default search engine, a deal that is under scrutiny in the ongoing DOJ antitrust lawsuit.
• Alphabet shares dropped more than 7% following Cue’s comments, erasing over $150 billion in market value, signaling investor concerns about Google's search dominance.
• Apple’s exploration of AI search integration reflects a broader shift in user behavior and competition, with AI-driven platforms potentially reshaping the search landscape.