During court testimony in the antitrust case against Alphabet Inc., Apple's Eddy Cue revealed the company's potential shift towards AI search technologies.
Apple's Plans for AI Search
Eddy Cue noted that Safari browser searches had declined, with more users turning to AI alternatives. He expressed that AI search engines like OpenAI and Perplexity AI would eventually replace traditional ones like Google. Cue emphasized that the features offered by AI platforms could significantly attract users.
CITE_W_A: "There’s enough money now, enough large players, that I don’t see how it doesn’t happen."
The Google-Apple Deal and Its Significance
The heart of the antitrust case revolves around a $20 billion deal that makes Google the default search engine in Safari. Despite his enthusiasm for AI alternatives, Cue acknowledged the importance of keeping Google as the default to maintain financial benefits. He also expressed concern over the potential loss of revenue from this agreement.
Market Reaction to the News
The market reacted swiftly to Apple's plans, with Alphabet shares falling by 7%, while Apple experienced a 2.5% drop. This highlights the significance of the Google-Apple search deal for both companies and raises questions about their future amidst the growing interest in AI technologies.
The discussion surrounding Apple's potential move to AI search and its implications for the partnership with Google highlights critical issues in the tech industry. The future of this deal remains uncertain as user preferences evolve.
