Overview
- Apple executive Eddy Cue testified that the company is actively exploring adding AI search providers like OpenAI and Perplexity AI to Safari.
- Safari search volumes dropped for the first time in April, attributed to users increasingly turning to AI tools for information.
- Alphabet’s stock plunged by over 7% following Cue’s testimony, erasing more than $150 billion in market value, reflecting concerns over Google’s ad revenue model.
- The U.S. Department of Justice is pushing for a ban on Google’s $20 billion annual payments to Apple for default search status, further intensifying antitrust scrutiny.
- Apple’s move underscores the growing influence of AI in search and signals a potential shift in market dynamics as users embrace generative AI tools.