Tuesday, 02 January 2024 12:17 GMT

Apple Executive Says AI Will Replace Google


(MENAFN) On Wednesday, the stock values of both Apple and Alphabet, Google's parent firm, dropped significantly following remarks from Eddy Cue, Apple’s Senior Vice President of Services.

Cue stated in a Washington federal courtroom that he envisions artificial intelligence (AI) innovations eventually supplanting traditional search platforms like Google.

His comments came during his testimony in the U.S. Department of Justice’s ongoing antitrust litigation against Alphabet.

Cue revealed that Apple is actively considering the integration of AI-based platforms—such as OpenAI, Perplexity, and Anthropic—into Safari's browsing tools.

This signals a potential departure from Apple’s current heavy dependence on Google as its primary search provider.

The central issue in the lawsuit involves Google's strategy of spending vast sums to remain the preset search engine on various platforms, particularly Apple’s Safari.

A U.S. District Court judge has already determined that Google unlawfully dominated the digital advertising market, and is now evaluating possible corrective actions.

Alphabet’s stock plummeted by more than 7.5 percent as investors expressed anxiety over the potential threat this case poses to Google's profitable advertising operations.

Apple is not immune to risk either.

Testimony from the trial revealed that the company earned as much as USD20 billion from Google in 2022 in return for preserving Google’s top search position.

Cue admitted he is worried about forfeiting this significant income-sharing deal, yet he still maintains that Google should continue as Safari’s leading search option—for now.

He also mentioned a recent dip in Safari usage, attributing it to growing user interest in AI alternatives.

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