Apple’s Senior VP of Services, Eddy Cue, revealed last week that the company is “actively looking at” revamping Safari to focus on AI-powered search engines. This potential shift, disclosed during testimony in the Department of Justice’s antitrust lawsuit against Google, could end the estimated $20 billion annual partnership that makes Google the default search option on Apple devices.
Apple’s AI Search Plans Emerge Amid Legal Pressure
During his hour-long testimony on May 7, Cue confirmed that Apple has been in discussions with several AI companies, including OpenAI, Perplexity AI, and Anthropic, about integrating their AI search capabilities into Safari [1]. This revelation comes at a critical moment as the DOJ’s antitrust case against Google threatens the lucrative arrangement between the two tech giants.
“We will add them to the list — they probably won’t be the default,” Cue stated, referring to the AI search providers [2]. He indicated that while these services aren’t yet ready to replace Google as the default option, Apple is preparing for a future where traditional search engines could be supplanted by AI-powered alternatives.
Search Behavior Already Shifting Toward AI
In a surprising disclosure, Cue testified that searches on Safari declined for the first time in April 2025, which he attributed to users increasingly turning to AI tools instead of traditional search engines [3]. “That has never happened in 22 years,” he emphasized, referring to the period since Safari was first released in 2003 [4].
This shift in user behavior aligns with Apple’s recent AI initiatives. The company currently offers ChatGPT as an option in Siri and plans to add Google’s Gemini later this year [5]. Google CEO Sundar Pichai previously testified that his company hopes to reach an agreement with Apple by mid-2025 to include Gemini AI technology on new iPhones [6].
The $20 Billion Question: Google Partnership at Risk
The financial stakes of this potential transition are enormous. The agreement between Apple and Google, worth approximately $20 billion annually, represents about 14-16% of Apple’s annual operating profits according to some analyst estimates [7]. The deal, which makes Google the default search engine on Safari, is central to the DOJ’s antitrust case.
Judge Amit Mehta ruled in August 2024 that Google had violated antitrust law through its exclusive search deals [5]. The remedies phase of the trial is currently underway, with the DOJ proposing several significant changes that could force the companies to unwind their partnership.
During his testimony, Cue admitted he has “lost a lot of sleep” over the possibility of losing the revenue share from their agreement with Google [4]. However, he also argued that technological shifts are creating new competitive opportunities that may render the existing arrangement less crucial in the future.
Technology Shifts Creating New Competitive Landscape
Cue made a particularly noteworthy comment about the rapidly changing tech landscape: “You may not need an iPhone 10 years from now. As crazy as that sounds,” he testified. “The only way that you truly have real competition is when there’s technology shifts” [8].
This perspective suggests that Apple views AI as a transformative technology that could reshape not just web search but potentially the entire device ecosystem. By exploring partnerships with companies like OpenAI, Perplexity, and Anthropic, Apple appears to be positioning itself for this anticipated shift.
Cue believes that while AI search providers still need to improve their search indexes, their other features are “so much better that people will switch” [5]. “There’s enough money now, enough large players, that I don’t see how it doesn’t happen,” he said about the shift from standard search to AI-powered options [5].
Market Impact Already Felt
The market reacted swiftly to Cue’s testimony. Alphabet (Google’s parent company) shares closed down more than 7% following his comments, representing a drop in market value of approximately $150 billion [9]. The significant reaction prompted Google to issue a rare statement contradicting Cue’s claim about declining Safari searches.
“We continue to see overall query growth in Search,” Google stated. “That includes an increase in total queries coming from Apple’s devices and platforms” [9].
Apple’s Broader AI Strategy
Apple’s exploration of AI search capabilities appears to be part of a broader AI strategy. The company recently partnered with OpenAI to integrate ChatGPT into its Apple Intelligence features [10]. Additionally, Apple is reportedly collaborating with Anthropic to develop “vibe-coding” software that will use AI to write, edit, and test code for programmers [10].
These partnerships suggest that rather than building all AI capabilities in-house, Apple is taking a collaborative approach, working with established AI leaders to enhance its products and services.
What’s Next for Safari and Search
While Cue confirmed that Apple is exploring AI search options for Safari, he emphasized that these services are not yet ready to become the default. “To date, they’re just not good enough,” he noted [4], suggesting that any transition away from Google would be gradual rather than immediate.
The outcome of the DOJ’s antitrust case against Google will likely play a significant role in determining the timeline and nature of these changes. Judge Mehta is expected to issue a decision on remedies by August 2025 [9], which could potentially force the companies to alter or end their current agreement.
Conclusion
Apple’s exploration of AI-powered search for Safari represents a potentially seismic shift in how users access information online. Driven by both legal pressure and technological evolution, this move signals Apple’s recognition that the future of search may look very different from its current form.
As AI tools continue to evolve and user behavior shifts accordingly, the traditional search paradigm dominated by Google faces unprecedented challenges. Whether through court-mandated changes or proactive strategic decisions, Apple appears to be preparing for a post-Google search experience that leverages the emerging capabilities of artificial intelligence.
Key Takeaways
- Apple is “actively looking at” integrating AI search engines from OpenAI, Perplexity, and Anthropic into Safari
- Safari searches declined for the first time in April 2025, according to Eddy Cue, attributed to users choosing AI tools over traditional search
- The $20 billion annual deal making Google the default Safari search engine is at risk due to antitrust action
- Alphabet shares dropped 7% following Cue’s testimony, representing about $150 billion in market value
- Apple is pursuing multiple AI partnerships, including with OpenAI for Apple Intelligence and Anthropic for coding tools
- Judge Mehta is expected to issue a decision on Google antitrust remedies by August 2025
References:
[1] Mark Gurman, “Apple Explores Move to AI Search in Browser Amid Google Fallout,” Bloomberg, May 7, 2025, https://www.bloomberg.com/news/articles/2025-05-07/apple-working-to-move-to-ai-search-in-browser-amid-google-fallout
[2] Anton Shilov, “Apple’s Eddy Cue: AI search is coming to Safari, Google queries are falling, and the iPhone may be obsolete in 10 years,” TechSpot, May 7, 2025, https://www.techspot.com/news/107844-apple-eddy-cue-ai-search-coming-safari-google.html
[3] Sarah Perez, “Apple is looking to add AI search engines to Safari,” TechCrunch, May 7, 2025, https://techcrunch.com/2025/05/07/apple-is-looking-to-add-ai-search-engines-to-safari/
[4] Rhett Jones, “Apple’s Stock Price Falls After Exec Says It Is Considering Injecting Safari With AI,” Gizmodo, May 7, 2025, https://gizmodo.com/apples-stock-price-falls-after-exec-says-it-is-considering-injecting-safari-with-ai-2000599351
[5] Matt G. Southern, “Apple May Add AI Search Engines to Safari As Google Use Drops,” Search Engine Journal, May 8, 2025, https://www.searchenginejournal.com/apple-may-add-ai-search-engines-to-safari-as-google-use-drops/546220/
[6] Jody Godoy, “Google hopes to reach Gemini deal with Apple this year,” Reuters, April 30, 2025, https://www.reuters.com/sustainability/boards-policy-regulation/google-ceo-sundar-pichai-take-stand-search-antitrust-trial-2025-04-30/
[7] Malcolm Owen, “Apple could be out $20 billion a year if Google loses antitrust case,” AppleInsider, October 11, 2023, https://appleinsider.com/articles/23/10/11/apple-could-be-out-20-billion-a-year-if-google-loses-doj-antitrust-case
[8] Parker Ortolani, “Apple SVP Eddy Cue says ‘you may not need’ iPhone by 2035,” 9to5Mac, May 7, 2025, https://9to5mac.com/2025/05/07/eddy-cue-says-we-may-not-need-iphone-by-2035-due-to-ai/
[9] William Gallagher, “Apple looking to AI for Safari search rumor forces rare & terse Google denial,” AppleInsider, May 8, 2025, https://appleinsider.com/articles/25/05/08/apple-looking-to-ai-for-safari-search-rumor-forces-rare-terse-google-denial
[10] Amanda Silberling, “Apple and Anthropic reportedly partner to build an AI coding platform,” TechCrunch, May 2, 2025, https://techcrunch.com/2025/05/02/apple-and-anthropic-reportedly-partner-to-build-an-ai-coding-platform/
