Apple’s Eddy Cue says AI engines like OpenAI and Perplexity could eventually replace Google—threatening the tech giants’ $20 billion search deal.
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Apple is considering reworking its Safari web browser across its devices to place a greater emphasis on AI-powered search engines, Bloomberg reported Wednesday.
The disclosure came from Eddy Cue, Apple’s senior vice president of services, during his testimony Wednesday in the Department of Justice’s lawsuit against Alphabet. Cue was speaking about the two companies’ $20 billion-a-year deal that makes Google the default search engine on Apple’s browsers.
The Apple executive said he expects AI search providers—like OpenAI, Anthropic, and Perplexity—to eventually replace standard sources like Google. Apple has already seen a decline in Safari searches for the first time last month, which Cue attributed to the growing use of AI. Still, he added, it’s too early for these platforms to become the default.
Currently, Apple and Alphabet have a lucrative agreement that allows Apple users—across more than 2 billion active devices—to perform searches through Google. Initially, Apple agreed to use Google in its Safari browser for free. Eventually, the two companies agreed to share revenue generated from search advertising. A shift away from Google and the entry of multiple competitors into the space could jeopardize that profitable arrangement, which contributes significantly to Apple’s revenue.
“There’s enough money now, enough large players, that I don’t see how it doesn’t happen,” Cue said about the switch from standard internet search to AI, according to Bloomberg.
