Alphabet shares fell more than 8% Wednesday after Apple’s services chief Eddy Cue suggested AI could eventually replace Google’s search engine. Testifying in the Justice Department’s antitrust trial against Alphabet, Cue said Apple is exploring adding AI tools like OpenAI, Perplexity, and Anthropic as future search options in Safari. The case centers on Google’s alleged dominance in digital ads and its billion-dollar deals to remain the default search engine on Apple devices.
Cue said he believes Google should stay the default, but admitted he has “lost sleep” over the possible loss of revenue if the partnership falters. He also noted a decline in Safari searches in April, which he attributed to the growing popularity of AI tools. The comments rattled investors, signaling long-term risk to Google’s ad business and its grip on mobile search.
