American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Google stock slides after Apple exec links Safari search dip to AI use

by admin May 8, 2025
May 8, 2025
Google stock slides after Apple exec links Safari search dip to AI use

The long-simmering question of whether artificial intelligence could truly disrupt Google’s search dominance ignited investor fears on Wednesday, sending Alphabet Inc.’s stock tumbling after a high-ranking Apple executive testified that AI usage is already cutting into traditional search activity on iPhones.

Apple exec points to AI impact on search volume

Testifying during the ongoing federal antitrust trial against Google’s parent company, Alphabet, Apple’s Eddy Cue delivered a potentially damaging assessment.

He revealed that searches conducted via Apple’s Safari browser – a major gateway to Google for millions – experienced their first-ever decline in volume in April.

Cue directly attributed this unprecedented dip to users increasingly turning to AI engines instead of traditional search to find answers.

Cue’s testimony carries significant weight given the context.

Apple receives substantial payments from Google, reportedly exceeding $20 billion annually, to maintain Google as the default search engine on Apple devices like the iPhone and iPad.

This lucrative arrangement is central to the Justice Department’s antitrust case against Google.

Adding further pressure, Cue also suggested Apple would likely incorporate AI engines as search alternatives on its devices over time, according to Bloomberg reports on his testimony.

Validating fears, fueling AI bets

This disclosure from a key Google partner appears to validate a core fear that has hovered over Google since AI chatbots like OpenAI’s ChatGPT exploded onto the scene in 2022: that AI could fundamentally erode Google’s highly profitable search empire.

It neatly explains the massive influx of venture capital into AI startups, as investors bet these new technologies can carve out significant market share from Google, whose search dominance underpins its $2 trillion valuation.

The prospect of AI disruption is precisely what has spurred Google itself to aggressively integrate AI into its own services, transforming conventional searches into conversational queries answered by its Gemini AI engine through features like AI Overviews.

Despite early, sometimes mocked, missteps (infamously including suggesting glue on pizza), Google has consistently maintained that users appreciate the AI-enhanced results.

Contrasting narratives: Google vs. Apple testimony

During Alphabet’s earnings call last month, CEO Sundar Pichai presented an optimistic view, claiming Google’s AI features were actually boosting engagement.

“Nearly a year after we launched AI Overviews in the US, we continue to see that usage growth is increasing as people learn that Search is more useful for more of their queries,” Pichai told analysts at the time.

Cue’s sworn testimony on Wednesday directly challenges that narrative, suggesting Google’s efforts haven’t fully insulated its core market from the AI shift.

The market reaction was swift and negative, with Google shares falling more than 7% following the news.

Google pushes back

Late Wednesday, Google issued a statement disputing Cue’s assertion.

The company stated it continues to see “overall query growth in search,” specifically adding, “That includes an increase in total queries coming from Apple’s devices and platforms.”

The conflicting statements from two deeply intertwined technology giants highlight the high stakes involved as AI continues to reshape how users seek and consume information online, posing a potentially existential challenge to Google’s long-held dominance in search.

The post Google stock slides after Apple exec links Safari search dip to AI use appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Europe markets open: stocks poised higher; central banks, earnings dominate agenda
next post
Indian markets open: Sensex, Nifty likely to dip; focus shifts to geopolitical risk

Related Posts

I’d avoid SLB and Baker Hughes and buy Weatherford...

September 24, 2024

Alibaba chairman confirms Apple partnership for AI-powered iPhones...

February 13, 2025

AMD stock price forecast: Here’s why it could...

November 30, 2024

Nifty 50 index is slowly forming a high-risk...

December 6, 2024

Millions of college students in limbo after aid...

February 1, 2024

Deutsche Bank share price analysis: chart points to...

December 30, 2024

FTSE 100 Index is surging: here are the...

May 6, 2025

Tesla has downsized by at least 14% this...

June 24, 2024

Care.com settles charges it inflated jobs listings and...

August 30, 2024

The ‘funflation’ effect: Why Americans are spending on...

June 28, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,209)
    • Investing (2,537)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved