Apple's AI-Powered Safari: A Threat to Google's Search Dominance

Apple's exploration of AI-powered search capabilities in its Safari browser is set to challenge Google's longstanding dominance in the search engine market. The tech giant's move presents a significant threat to Google's advertising business, heavily reliant on iPhone users employing its search engine.

Shares of Google's parent company, Alphabet, dropped 7.3%, erasing approximately $150 billion from its market value. Apple executive Eddy Cue indicated that users increasingly rely on AI-driven searches, marking a possible shift away from Google's hold on Safari, where it is the default search engine.

This development takes place amidst U.S. antitrust cases targeting Google's online search monopoly. As Google implements AI advancements to maintain its user base, the market remains alert to potential alternative search providers like OpenAI and Perplexity AI, foreseeing a shift in search engine dynamics.

(With inputs from agencies.)