For many people, Google is the Internet. This has been especially true on Apple products, where Google is the default search engine in the Safari browser. But the emergence of artificial intelligence could change that soon.
AI's threat to Google "just got real," said The Wall Street Journal. Google searches on Safari have fallen in recent months as users turn instead to ChatGPT and Perplexity, Eddy Cue, Apple's senior vice president of services, said last week. That decline has "not happened in over 20 years." His statements "thicken the cloud of uncertainty" hanging over Google, said the Journal.
Google pays Apple $20 billion a year to be the default search engine on Safari, said USA Today. But Apple is "actively looking" at incorporating AI search into Safari, said Cue.
What did the commentators say? Google execs have been "racing to stave off a decline" in its search business ever since ChatGPT "exploded onto the scene" in 2022, said Bloomberg. Some studies previously suggested that many internet users turned to AI as a "complement to classic search, not a full replacement." That may be changing, which raises the question of how quickly "Google's money-printing search machine" will decline.
Cue may have an "incentive to portray Google as a wounded animal," said Peter Kafka at Business Insider. A federal judge ruled last year that Google has an "illegal monopoly in search" and may order the company's payments to Apple to stop. Playing up the AI competition would undermine that judgment.
Google's parent company, Alphabet, is "not in immediate danger," said Jeremy Kahn at Fortune. It is still "far and away the dominant player in search," and it has other sources of revenue. Cue's comments, though, are a sign that the "clock is ticking."
What next? Cue's comments briefly sparked a selloff of Alphabet stock but investors "shouldn't panic," said Quartz. Analysts at Jeffries said that while the Safari browser accounts for 17% of the market, Google's Chrome "commands 66%" of browser-based internet activity. That gives Alphabet a "much larger footprint regardless of what Apple does."
Google is also betting on the future of AI, said TechCrunch. The company is now testing an "AI Mode" button to replace the "I'm Feeling Lucky" button. Google "rarely makes changes to its search homepage" but it "may now feel pressure to do so." |