Apple is reportedly gearing up to introduce artificial intelligence-powered search features into its Safari browser, potentially upending Google's stronghold on the search market. As revealed during an antitrust case involving Alphabet, Apple executive Eddy Cue noted the company is considering integrating AI search providers, such as OpenAI and Perplexity AI, into Safari, Reuters reported.
This potential integration poses a direct threat to Google's substantial financial deal with Apple, under which Google pays about $20 billion each year to remain the default search engine on Safari, according to the Financial Times. The news of Apple's exploration into AI-driven search options has already impacted Alphabet's stock, which sank by up to 9%, wiping out more than $80 billion in market valuation, as Axios highlighted.
In response to these developments and to bolster its AI capabilities, Google has rolled out an 'AI mode' on its search engine. Additionally, Google is reportedly in discussions with Apple to incorporate its Gemini AI technology into future iPhone models. Meanwhile, Apple continues to bolster its AI initiatives within Safari, having already launched the 'Summarize' feature that provides concise page overviews, according to 9to5mac.