May 8 – Apple Inc is exploring the addition of artificial intelligence-powered search engines, including Perplexity, to its Safari browser, in a potential shift that threatens Google’s long-held dominance in search on iOS devices.
The move, disclosed during an ongoing antitrust trial over Google’s search practices, triggered a sharp sell-off in Alphabet Inc shares. The stock closed down 7.3% on Wednesday, erasing roughly $150 billion in market value. Apple shares also slipped 1.1%.
Apple’s head of services, Eddy Cue, told the court that the company is “actively looking at” revamping Safari’s search capabilities as user behavior increasingly leans towards AI-driven platforms. Cue noted that Safari searches declined for the first time last month, a trend he attributed to growing interest in AI tools.
The testimony comes amid intensifying scrutiny of Google’s market power, particularly its multi-billion dollar agreement with Apple to remain the default search engine on iPhones and other devices.
Google responded in a blog post, saying it continues to see growth in search queries across all platforms, including those originating from Apple devices. “People are seeing that Google Search is more useful for more of their queries and they are accessing it for new things and in new ways,” the company wrote.
Apple’s potential partnership with AI search tools like Perplexity could significantly disrupt Google’s advertising model, which heavily depends on traffic from Safari. Analysts say any move by Apple to diversify its search options could reshape the digital advertising and mobile search landscapes.
The developments mark the latest challenge to Google’s search dominance, which remains at the heart of the U.S. Justice Department’s antitrust case against the tech giant.
