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Apple considers "abandoning Google Chrome" to upgrade Safari with AI search, Alphabet's stock price plummets by 7.5%
Eddy Cue, Apple's senior vice president of services, revealed that Apple is "actively considering" revamping the Safari web browser on its devices and focusing on artificial intelligence (AI)-driven search engines to replace Alphabet's Google search engine. (Synopsis: ChatGPT Search's new AI search feature is here!) Plus subscribers are the first to use it, can it shake Google's hegemony? (Background added: OpenAI: We are "willing to buy Chrome" if Google is forced to sell, giving users a truly AI-centric search experience) According to Bloomberg, Eddy Cue, Apple's senior vice president of services, revealed on Wednesday in testimony for the U.S. Department of Justice's lawsuit against Alphabet that Apple is "actively considering" revamping the Safari web browser on its devices and focusing on artificial intelligence (AI)-driven search engines to replace them Alphabet's Google search engine. There are two reasons behind Apple's consideration for this consideration. First, the U.S. Department of Justice launched an antitrust lawsuit against Google in 2020, accusing Google of illegally maintaining its monopoly position in online search and related advertising markets through unfair competitive means. One of the focuses of the lawsuit is the Information Services Agreement between Google and Apple. This protocol ensures that the Google search engine becomes the default option for Apple devices. In return, Google pays Apple a huge fee every year, which is as high as $20 billion in 2022, according to court documents. The DOJ argues that such exclusivity agreements limit competitive opportunities for other search engines, such as Microsoft's Bing or the emerging AI search platform, hinder market competition and undermine consumers' right to choose. Therefore, the case may force Google to terminate the cooperation with Apple, prompting Apple to find alternatives. It's also important to note that the rapid development of AI technology is changing consumer behavior. Eddy Cue said Safari searches fell for the first time last month, something that hasn't happened in 20 years, which he attributed to users switching to AI tools. Eddy Cue believes that AI search providers, such as OpenAI, Perplexity AI, and Anthropic PBC, will eventually replace traditional search engines. He said that Apple may bring these AI options to Safari in the future: we will add them to the list of options, and before the advent of AI, I didn't think any other search engine was a viable option, but today, the potential is much greater because new entrants solve problems in different ways. Alphabet shares fell 7.5% in response Eddy Cue's testimony sparked market concerns, and shares of Google's parent company Alphabet fell sharply. According to Yahoo financial data, Alphabet's stock price fell 8.47% after the opening yesterday (7) night, closing at $152.8, reflecting the market's panic that Google's long-term solid position in the search business may be shaken. Currently, AI tools are indeed posing a significant challenge to traditional search engines. According to public information, with the popularity of generative AI tools such as ChatGPT and Perplexity, more and more users are beginning to use AI to meet their search needs. For example, according to Statista's 2024 report, about 25% of Internet users worldwide say they use AI chatbots to answer questions or complete search tasks at least occasionally, and this percentage is higher among younger people. In addition, AI search platforms can provide more intuitive and conversational answers, attracting users looking for fast, accurate information. In contrast, the keyword match pattern of traditional search engines seems to be gradually becoming obsolete. Related reports OpenAI free "ChatGPT search function" can be used without registering an account, Google is panicking? Will AI threaten Google's search hegemony? Bank of America survey unexpected 2023 statistics "Google search "AI" far surpasses bitcoin and cryptocurrency! China is most interested in artificial intelligence (Apple considers "abandoning Google browser" to upgrade Safari to introduce AI search, Alphabet's stock price plunged 7.5%" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".