šŸŽ Apple turns to AI for Safari search

The strategic move has caused Alphabet stock to tumble in response.

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Hi AI Futurists,

Big waves in search: Apple is looking into bringing AI engines like Perplexity into Safari and rethinking its $20B deal with Google. Let’s unpack why search is shifting and what it means for the future of information.

Here’s our agenda.

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  • Top AI news

  • Apple goes all in on AI search

  • Top 3 selected AI tools

  • AI in the wild

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Lex

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šŸŽ Apple reshapes its AI strategy

Apple is getting ready to add AI search tools like Perplexity and Anthropic to Safari on iPhone, iPad, and Mac, a move that could chip away at Google’s dominance in default mobile search. In court testimony during the ongoing antitrust trial against Google, Apple SVP Eddy Cue said these AI tools ā€œprobably won’t be the default,ā€ but they’ll be offered as alternatives. That was enough to shake Wall Street as Alphabet's shares dropped 7.3%, wiping out $150 billion in market value.

Cue also dropped another bomb: for the first time ever, Safari search usage declined in April, as users turned to AI models to find answers. That’s not great news for Apple either, which earns a reported $20 billion annually from its deal with Google. If search volume drops or the DOJ ends the Google-Apple arrangement, Apple’s ad revenue cut goes down too. While Google responded that search queries overall are still growing, especially through features like Lens and voice, it’s clear that the search business is entering unfamiliar territory. Google tried to emphasize growth from Apple devices, but the public focus shifted to how Apple’s own AI tools may soon threaten Google's hold.

Apple is playing a long game: diversify AI partnerships, maintain leverage with Google, and prep its devices for a post-search world. As defaults shift and search behaviors evolve, the biggest impact may be on ad-driven business models and on how we discover, trust, and value information. Speed and relevance are quickly becoming more important than loyalty to established brands.

Takeaways at a glance

  • Apple will offer AI search tools like Perplexity and Anthropic in Safari

  • Google may lose its default search status on Apple devices

  • Apple earns ~$20B/year from its deal with Google

  • Safari search traffic declined for the first time ever in April

  • DOJ trial could disrupt Google’s ad/search dominance

  • Apple wants AI search tools to compete in general search with deep indexes

  • Google highlights growth in search via Lens and voice

  • Apple already uses ChatGPT for Siri under a no-revenue deal

What We Think About It:

  • This is a strategic shift by Apple to gain leverage over Google while keeping future AI options open. The Safari default may not change overnight, but Apple is clearly preparing for it. We’re entering a phase where discovery is being rewritten and AI agents may soon replace traditional search as we’ve known it.

What You Can Do Right Now:

  • Try using AI search tools like Perplexity or ChatGPT instead of Google for a few days and notice how the answers feel different. Think about where you get your information and whether it's time to update your digital habits.

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