Alphabet Inc. shareholders are increasingly worried about the immediate impacts of artificial intelligence on its lucrative search business, valued at $20 billion annually from Apple contracts. Recent remarks from Apple’s Eddy Cue indicated declining usage of Safari, suggesting competitors like OpenAI could be siphoning off search traffic. Despite Alphabet’s attempt to reassure investors that search queries are still on the rise, the drop in share value—7.3% in one day—indicates growing concerns about Alphabet's competitive position in the AI landscape, marking a shift in the search market dynamics.
The recent court testimony revealing Apple’s plans for AI in its web browser highlighted an immediate existential threat to Alphabet’s dominant search business, valued at $20 billion.
Apple’s Safari searches have declined for the first time, which coupled with AI competition from firms like OpenAI poses significant long-term risks to Google’s search revenue.
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