Investors in Apple and Google are showing signs of concern as artificial intelligence-based search tools like ChatGPT gain popularity and disrupt traditional web search behavior. According to a report by Seeking Alpha, Google’s stock dropped by 8% last week following a key revelation during a Justice Department antitrust case. Apple’s Senior Vice President of Services, Eddy Cue, testified that Google searches conducted through Safari on Apple devices declined for the first time last month. Cue attributed this shift to the rising use of AI search platforms such as OpenAI’s ChatGPT.
Apple is reportedly exploring options to include alternative AI search engines like Perplexity in its Safari browser. Currently, Google maintains its dominance in Safari search results through a longstanding revenue-sharing deal with Apple. In 2022, this agreement brought Apple $20 billion in revenue, underlining how any change could significantly affect both tech giants.
The testimony led to major market reactions. Alphabet, Google’s parent company, saw nearly $150 billion in market value erased, while Apple’s stock fell about 1%.
Analyst Dilantha De Silva noted that while some smartphone users may not yet prioritize AI features, the momentum is shifting. Apple is expected to adapt to meet evolving consumer expectations. Meanwhile, Nexus Research warned that Google’s position as the default search provider is under threat, especially as Apple negotiates with competitors like Perplexity and continues talks with Google about integrating its Gemini AI assistant into Siri.
OpenAI, which powers ChatGPT, is also expanding its consumer ambitions. The company recently appointed Instacart CEO Fidji Simo to lead its applications division. According to PYMNTS, this move signals OpenAI’s intent to become a major consumer tech platform, not just an AI tool provider. Julia Huang from Vesey Ventures emphasized that OpenAI’s push into consumer products challenges Google’s dominance, especially as more people shift to AI chatbots for search and interaction.
