Apple plans to integrate AI search providers into the Mac, iPad, and iPhone Safari browsers. In court testimony today, Apple SVP Eddy Cue reportedly disclosed that, with regard to suppliers such as Perplexity and Anthropic, “we will add them to the list — they probably won’t be the default.”
Cue also disclosed that, for the first time ever, fewer people used Safari to search for information in April, indicating that people are turning to AI sources as a backup.
Apple receives a portion of search engine ad revenue through its profitable partnership with Google and other search engines; hence, a decline in usage will result in lower profits for Apple. A current regulatory Google monopoly case is also threatening the default search engine agreement.
Currently, Google searches conducted through Safari on Apple devices generate over $20 billion in revenue for Apple each year. It’s funny that Cue’s testimony today is part of the evidence in the Alphabet monopoly case, which might result in the termination of the company’s existing search agreement with Apple, which uses Google as the default search engine on all Apple products.
For essential artificial intelligence features in its devices, Apple is depending more and more on outside businesses.
Apple and ChatGPT have already partnered to expand Siri’s capabilities as part of the initial wave of Apple Intelligence features. According to reports, OpenAI is giving Apple free access to ChatGPT in return for significant publicity, with the goal of converting users into paying subscribers.
However, it appears that Apple would prefer to reach revenue-sharing agreements with Google that are comparable to what it presently receives in exchange for placement in Safari. But Cue also stated that he wants the AI providers to advance and have deeper search indexes so they can compete with Google in general inquiries.
