Apple’s next big move in AI could end up being one of the most disruptive things to Google in years.
According to new reports, Apple plans to add AI-powered search options directly into its Safari browser, potentially ending Google’s long reign as the default search engine on iPhones. That’s a huge deal. Google pays Apple an estimated $20 billion a year just to stay in that spot.
The news was enough to get investors’ attention. Alphabet, Google’s parent company, saw its stock tumble 7.3%, wiping out about $150 billion in market value. For context, that’s more than Netflix’s entire market cap. Apple’s stock dipped slightly, down 1.1%.
This update was leaked during an ongoing antitrust trial focused on Google’s dominance in search. Apple executive Eddy Cue testified that searches in Safari declined last month—something that’s never really happened before. Why? More people are turning to AI tools like ChatGPT and Perplexity to find what they need.
This shift might seem small now, but it points to something bigger: people are changing how they search online. And Apple seems ready to lean into that.
Others reportedly confirmed that Apple is planning to add alternative AI search providers to Safari, like OpenAI’s ChatGPT and Perplexity AI. That means, in the near future, you could search the web on your iPhone using AI instead of Google by default.
For Google, this isn’t just about losing a slot on a browser. It’s about protecting the foundation of its business. Around 36% of Google’s search ad revenue comes from Safari. If Apple ends its exclusive deal, that money and user attention could shift elsewhere.
And it’s not just regulators watching closely. Advertisers are, too. Right now, most companies put nearly all their search ad money into Google, simply because it dominates the space.
But if users begin searching with AI tools that offer better answers, faster, marketers may start to rethink where they spend those dollars.
As analyst Gil Luria put it, “The loss of exclusivity at Apple should have very severe consequences for Google.”
Of course, Google isn’t just sitting back and letting Apple run off with its lunch. The company has been scrambling to catch up in the AI race ever since ChatGPT took the world by storm in late 2022.
It recently launched an “AI mode” in Search and rolled out AI Overviews—quick summaries that sit at the top of search results. These are now live in over 100 countries, and yes, Google has already found a way to insert ads into them.
Google CEO Sundar Pichai also mentioned in court that they’re hoping to strike a new deal with Apple—this time to include Google’s Gemini AI on iPhones. So, the tug-of-war over Apple’s users is still very much alive.
All of these point to a major shift in how we find information online. For over a decade, Google has been the place to search. But AI is changing the game. People want more conversational, smart, and context-aware answers, and Apple sees an opportunity to meet that demand differently.
If Apple opens the door to AI-powered alternatives, it could loosen Google’s grip on search in a way regulators never could. And if it works? It’ll be one of the most significant power shifts in Big Tech we’ve seen in years.
