AI Shakes Up Search: Eddy Cue's Bombshell in Court
Google's Stock Nosedives Following Decision by Apple's Manager - Apple executive allows Google shares to plummet.
Let the chaos commence! In a courtroom shocker, Apple's top services overlord, Eddy Cue, set Google's shares spiraling downward by eight percent with just a few words. What did he say, you ask? He revealed that Apple intends to integrate a new AI search feature, bypassing Google, into its Safari browser.
To add fuel to the fire, Cue also mentioned the first ever decrease in web searches on Safari, which he pins on the rise of AI-powered software. This bombshell dropped during a U.S. government antitrust lawsuit against Google.
Investors Panic
The whisper had already been emerging: could AI chat systems like ChatGPT or Perplexity dash Google's reign over web search? Yet, Google's search engine business had been thriving, quarter after quarter. But now, Cue's revelations quelled investors' doubts and prompted them to offload their Alphabet shares. Ad revenue from search queries is Google's lifeline, after all.
Google's Response
Meanwhile, Google is working on elevating its search results with AI-generated summaries. Talk about biting the hand that feeds you - Google's software Gemini is squaring off against ChatGPT and other AI chatbots.
Apple's Stake
This legal battle matters big time to Apple. The lawsuit revolves around the deals that keep Apple and Firefox developer Mozilla raking in billions from Google in exchange for Google being the default search engine in the browsers. The U.S. government alleges that these deals cement Google's dominance and ought to be nixed.
An iPhone-less Future?
Another eyebrow-raiser came from Cue: "Crazy as it sounds, you might not need an iPhone in ten years." With an AI revolution on the horizon, the iPhone, which is Apple's money machine, could become a thing of the past.
- AI Horror Show
- Eddy Cue
- Apple
- Court
- Investors
- Decline
- Search
- Bloomberg
- ChatGPT
- Future
On the Rise of AI:
As top AI chat systems like ChatGPT and Perplexity creep up on Google’s dominance in search, long-time leader Google is bracing itself for a rough ride. Apple executive Eddy Cue's courtroom comments are a call to arms, revealing that Safari browser searches have taken a nosedive for the first time, with AI-powered alternatives on the rise[2].
Google still reigns supreme in global search usage with over 2 billion monthly active users and approximately 1.5 billion daily users as of early 2025. However, its ironhold on search can be attributed to extensive ecosystem integration, particularly on Android devices and iPhones, where Google Search serves as the default[1][3].
AI tools like Gemini, which reside right within Google's search offerings, aim to boost user engagement with advanced reasoning and multimodal support. Early impressions indicate that this AI integration could potentially double the time users spend on Google Search, keeping the company in the driver's seat as it faces off against AI competitors[1][3].
Still, Google's market share has dipped below 90% in 2024 and early 2025, representing a modest but noteworthy erosion amidst the rise of AI-powered alternatives. Bing, powered by OpenAI’s large language models, managed to snag about 4% of the market share, while AI-native tools like ChatGPT and Perplexity have made a splash, particularly among millennials and Gen Z[4].
In short, AI chat systems are undercutting Google's grip on search, upending the status quo and inspiring a fundamental transformation in user behavior and market share. Google's immense user base, ecosystem integration, and AI innovations like Gemini, however, provide it with a cushion it can lean on as it navigates the evolving AI-driven landscape.[1][2][3][4]
- The Commission has also been asked to submit a proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation in the fast-paced tech industry, with AI and AI-powered systems like ChatGPT becoming increasingly prominent.
- As investors grapple with the emergence of AI-powered alternatives to traditional search engines, they are increasingly looking at tech companies that are investing in AI and artificial intelligence-related technologies as a potentially safer bet in the stock-market.
- With Eddy Cue's revelations about Safari browser searches Taking a nosedive for the first time due to AI-powered alternatives, the future of the finance industry could see a shift in ad revenue sources, as companies focus on investing in AI systems that can provide added value and differentiation in the increasingly competitive tech landscape.
