Apple Executive Suggests AI May Replace Google, Triggering Market Selloff
TEHRAN (Tasnim) – Shares of Alphabet and Apple fell sharply after Apple’s Eddy Cue testified that AI tools could replace traditional search engines like Google, raising concerns over the future of a lucrative partnership.
Apple’s senior vice president of services, Eddy Cue, said on Wednesday that artificial intelligence tools could eventually replace search engines such as Google.
Cue made the remarks while testifying in a federal court in Washington during the US Justice Department’s antitrust trial against Alphabet.
He said Apple is considering integrating AI-driven services—including OpenAI, Perplexity, and Anthropic—into its Safari browser’s search functions.
The comments signaled a potential shift away from Apple’s current reliance on Google as its default search engine.
The Justice Department has accused Google of paying billions of dollars to remain the default search engine on browsers such as Safari.
A US District Court judge has already ruled that Google illegally monopolized digital advertising technologies and is now considering possible penalties.
Alphabet’s stock declined by more than 7.5% on Wednesday as investors worried that the case could undermine Google’s advertising business.
The case also carries financial risks for Apple, which earned up to $20 billion from Google in 2022 to maintain its search engine as the default, according to testimony.
Cue admitted he was concerned about losing that revenue-sharing agreement.
Despite this, he said he still supports keeping Google as Safari’s main search engine for now.
He added that Safari had seen a decline in searches last month, which he attributed to growing interest in AI tools.
