Apple’s Executive Predicts AI Takeover of Search, Tech Giants' Stocks Drop
(MENAFN) Statements made by Apple's Eddy Cue in court yesterday sent ripples through the tech world, causing significant drops in the stock values of both Apple and Alphabet, Google's parent company. During his testimony in the ongoing U.S. Justice Department's antitrust case against Alphabet, Apple's senior vice president of services voiced his belief that artificial intelligence technologies are poised to eventually supplant conventional search engines like Google.
Cue revealed that Apple is actively considering integrating AI-driven services from companies such as OpenAI, Perplexity, and Anthropic into the Safari browser's search capabilities. This exploration hints at a potential move away from their current dependence on Google for search functionality.
The antitrust lawsuit scrutinizes Google's practice of paying substantial sums to maintain its position as the default search engine on prominent platforms, including Apple's Safari. A prior ruling by a U.S. District Court judge determined that Google had illegally monopolized digital advertising technologies, and the court is now deliberating on potential remedies.
Investor concerns regarding the potential repercussions of this case on Google's highly profitable advertising business triggered a sharp decline of over 7.5% in Alphabet's shares on Wednesday.
The lawsuit also presents risks for Apple, which, according to trial testimony, received up to $20 billion from Google in 2022 alone for its default search engine status. Cue admitted to concerns about the potential loss of this revenue-sharing agreement, although he stated his current belief that Google should remain Safari's primary search engine. He also pointed out a recent decrease in Safari searches, attributing it to the growing user interest in AI-powered tools.
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