Eddy Cue, Apple’s Senior Vice President of Services, has ignited investor unease after suggesting that AI-powered search engines could soon replace Google. The comment, made during internal briefings and cited by Bloomberg, triggered a selloff in tech stocks Wednesday.
Cue revealed that Apple plans to incorporate search tools from OpenAI, Anthropic, and Perplexity AI into its Safari browser—a strategic shift that could displace Google, currently Apple’s default search engine under a deal reportedly worth $20 billion annually, according to The New York Times.
Markets reacted swiftly: Alphabet Inc. shares plunged 8.03%, closing at $151.94, while Apple dropped 1.78%, finishing at $194.98 (see chart above). Investors worry the shift could disrupt Google’s dominance in search and advertising.
Alphabet is also under growing legal pressure. On March 21, U.S. District Judge Amit Mehta ruled that Alphabet violated antitrust laws by maintaining a search monopoly. The ruling followed a high-profile case brought by the U.S. Department of Justice. According to Reuters, the next legal phase will determine penalties, with the DOJ calling for structural remedies that may include breaking up parts of Alphabet’s ad business.
Cue’s vision aligns with industry trends. AI engines like ChatGPT and Perplexity now offer real-time, conversational answers that bypass the need for traditional keyword-based search. Analysts predict that integrating these tools into Safari could mark the beginning of a broader realignment in how users access and process web content.
Bottom Line
With AI reshaping search dynamics and Google under federal scrutiny, the digital information economy stands at a turning point. Apple’s pivot toward AI search may redefine the landscape—and Alphabet’s future role within it.
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