APPLE EXECUTIVE SAYS AI WILL REPLACE GOOGLE, TRIGGERING STOCK PLUNGE

Thu 08 May 2025:

Stocks of Apple and Google’s parent company, Alphabet, fell sharply on Wednesday after Apple’s senior vice president of services, Eddy Cue, said he believes artificial intelligence (AI) tools will eventually replace traditional search engines like Google.

Cue made the comments while testifying in a federal court in Washington as part of the US Justice Department’s ongoing antitrust lawsuit against Alphabet.

He said Apple is exploring incorporating AI-powered services — such as OpenAI, Perplexity, and Anthropic — into Safari’s search functions in the future, suggesting a shift away from exclusive reliance on Google.

__________________________________________________________________________

https://whatsapp.com/channel/0029VaAtNxX8fewmiFmN7N22

__________________________________________________________________________

The lawsuit centers on Google’s practice of paying billions of dollars to remain the default search engine on platforms like Apple’s Safari browser. A US District Court judge previously ruled that Google unlawfully monopolized digital advertising technologies and is now weighing possible remedies.

Alphabet shares fell more than 7.5% on Wednesday, as investors reacted to concerns that the case could jeopardize Google’s lucrative ad business.

The case also raises risks for Apple, which received up to $20 billion from Google in 2022 alone to maintain its default search status, according to trial testimony.

Cue acknowledged that he was concerned about losing this revenue-sharing deal, though he still believes Google should remain Safari’s primary search engine for now. He also noted a drop in Safari searches last month, attributing it to rising interest in AI tools.

-Source: AA

__________________________________________________________________________

FOLLOW INDEPENDENT PRESS:

WhatsApp CHANNEL
https://whatsapp.com/channel/0029VaAtNxX8fewmiFmN7N22