Apple Just Threw Shade at Google — Says AI Will Take Over!
Google Stock Falls as Apple Executive Suggests AI Could Replace Traditional Search
Alphabet shares plunged over 7.5% on Wednesday after Apple’s senior vice president of services, Eddy Cue, suggested that artificial intelligence (AI) tools could eventually replace traditional search engines like Google.
Cue made the remarks during testimony in a Washington federal court, as part of the U.S. Department of Justice’s ongoing antitrust case against Alphabet. The case challenges Google’s dominance in digital advertising and its multi-billion-dollar deals—particularly with Apple—to remain the default search engine in browsers like Safari.
Cue revealed that Apple is exploring AI-driven search alternatives, including tools from OpenAI, Perplexity, and Anthropic, which could be integrated into Safari in future updates. While he clarified that Google would likely remain the default for now, Cue said AI was quickly changing how users search the internet. He also noted that Safari search traffic recently declined for the first time, attributing it to rising interest in AI tools.
The revelations rattled investors, fueling fears that Google’s core ad business could be threatened. The company paid Apple up to $20 billion in 2022 alone to maintain default status on its platforms.
Cue also disclosed that Google had unsuccessfully tried to become the AI partner for Apple’s new “Apple Intelligence” features, but its demands were rejected in favor of OpenAI’s ChatGPT, which is now integrated with Siri.
While Apple may risk losing significant revenue from its partnership with Google, Cue’s comments signaled a growing belief within the company that AI is set to reshape the future of search.
