Alphabet Shares Plummet 9% as Apple Plans AI Search Integration in Safari

Alphabet's stock plunged after Apple executive Eddy Cue testified during Google's antitrust trial that Apple is seriously considering integrating AI-powered search engines, such as OpenAI, Perplexity, and Anthropic, into Safari. Cue revealed that Safari searches recently declined for the first time, attributing the drop to users turning to AI-based alternatives. This shift threatens Google's dominance in online search, as Google currently pays Apple around $20 billion annually to be the default search engine on Apple devices. Cue indicated that while Google will likely remain the default in the near term due to the lucrative deal, Apple plans to add AI search options to Safari in the future. The news rattled investors, sending Alphabet shares down more than 8% and raising concerns about the stability of Google’s core ad-driven business model. Apple is already integrating ChatGPT into Siri and remains open to partnerships with various AI search providers, signaling a potential future shake-up in the search landscape.