Shares of Alphabet, Google's parent company, experienced a drastic drop exceeding 8% after news surfaced from Apple that it is considering AI-powered search options for Safari. This shift poses a potential challenge to Google's longstanding dominance. Apple executive Eddy Cue testified about this ongoing review during a federal antitrust case against Google. In 2022, Google paid Apple $20 billion to maintain its search engine as the default on Safari, making this deal tremendously lucrative for both companies, and critical to Alphabet's overall revenue strategy.
Eddy Cue, Appleâs services unit VP, revealed that Apple is "actively looking" at integrating AI-powered search options into Safari, possibly challenging Google's dominance.
Alphabet's shares plunged more than 8%, marking a significant loss for the stock following indications that Googleâs search engine may soon face competition from Apple.
Google pays Apple $20 billion annually for its search arrangement, which is crucial since a significant portion of Google's revenue comes from advertising on Safari.
With $160 billion lost in market capitalization in a single day, Alphabet's stock tanked, signaling a potential shift in the search engine landscape.
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