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Apple says searches are shrinking because people are using AI instead. Now Google's stock is tanking.
Business Insiderยท 2025-05-07 16:16
Core Insights - The rise of AI search engines is impacting traditional search engines like Google, with indications that users are shifting towards AI for information retrieval [1][2][3] - Apple executive Eddy Cue disclosed a decline in searches on Safari for the first time, attributing this change to the increasing use of AI [2][3] - Investors are increasingly funding AI companies, hoping to capture market share from Google, which currently holds a valuation of $2 trillion [4] Group 1 - Apple receives over $20 billion annually from Google to maintain its status as the default search engine on Apple devices [2] - Cue anticipates that AI search providers will eventually replace traditional search engines, with plans to incorporate them as options in Safari [3] - Google's attempts to transition into an AI company with its Gemini AI engine have not sufficiently protected its market share, leading to a more than 7% drop in Google shares [5]