Apple is exploring AI-powered search options for its Safari browser, challenging Google's dominance in the search engine market.
Users, especially from younger generations, are turning to AI tools like ChatGPT and Perplexity AI for queries, leading to a decline in Safari's search usage.
Google pays Apple approximately $20 billion annually to be the default search engine on Safari, and a shift to AI alternatives could impact this revenue stream.
Alphabet's stock saw a significant drop in response to concerns over the future of Google's search business following Apple's potential move towards AI-powered search.