Apple Executive Says AI Will Replace Google, Triggering Sharp Stock Decline
Stocks of Apple and Google’s parent company, Alphabet, fell sharply on Wednesday after Apple’s senior vice president of services, Eddy Cue, indicated that artificial intelligence (AI) tools might eventually replace traditional search engines like Google.
Cue made these remarks while testifying in a federal court in Washington as part of the US Justice Department’s ongoing antitrust lawsuit against Alphabet. During his testimony, he explained that Apple is considering integrating AI-powered services—such as OpenAI, Perplexity, and Anthropic—into the Safari browser’s search functions, hinting at a potential shift away from Google as the default search engine.
The lawsuit revolves around Google’s practice of paying billions of dollars to secure its position as the default search engine on platforms like Apple’s Safari. A US District Court judge had already ruled that Google unlawfully monopolized digital advertising technologies and is currently considering possible remedies.
As a result of Cue’s testimony and the potential implications for Google’s advertising business, Alphabet shares dropped more than 7.5% on Wednesday. Investors are concerned that the ongoing legal case could threaten Google’s profitable ad business.
The case also poses risks for Apple, which earned up to $20 billion from Google in 2022 to maintain its default search status, according to court documents. Cue expressed concerns about losing this revenue-sharing deal but also reiterated that Google should remain Safari’s primary search engine for the time being. He also noted a drop in Safari searches last month, which he attributed to a growing interest in AI tools.
