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Alphabet, Apple shares lose value amid possible search engine change

  • Apple's senior vice president Eddy Cue disclosed on May 7, 2025, that Apple is considering reshaping Safari to include AI-powered search engines like OpenAI and Perplexity.
  • This move follows a first-ever decline in Safari searches in April 2025 and occurs amid an ongoing $20 billion default search engine deal with Google, threatened by a U.S. Justice Department antitrust case.
  • Cue testified that AI search options will be added to Safari but probably will not become the default, reflecting users' growing shift to AI services for information retrieval.
  • He expressed confidence that with sufficient funding and major participants involved, the development will occur, while analyst Gil Luria cautioned that Google could face significant repercussions if it loses its exclusive status on Apple’s platform.
  • The inclusion of AI search providers in Safari implies significant pressure on Google's dominance and could reduce Apple's revenue from its current agreement if users continue switching to AI-based alternatives.
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Portfolio.hu broke the news in on Wednesday, May 7, 2025.
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