Shares of Alphabet and Apple fell Wednesday after Apple’s services chief, Eddy Cue, said he believes AI will eventually replace traditional search engines like Google, Bloomberg reported.
Cue testified in a federal antitrust trial against Alphabet, where he stated Apple plans to integrate AI search tools from OpenAI, Perplexity, and Anthropic into Safari.
The Justice Department is challenging Google’s dominance in ad tech and its payments to remain Safari’s default search engine. Cue said, “I have lost sleep” over losing Google’s revenue, but noted Safari search volume declined in April due to rising AI use. Alphabet shares dropped over 8%; Apple’s fell 2%.