Apple is “actively looking at” restructuring the Safari web browser on its devices to prioritize AI-powered search engines, Bloomberg News reported Wednesday. This shift could undermine Google’s dominance in the highly profitable search market. According to the report, Apple executive Eddy Cue testified in the U. S. Justice Department’s antitrust case against Alphabet, revealing that searches on Safari declined for the first time last month. He attributed this drop to users increasingly favoring AI technologies. Google currently serves as the default search engine on Apple’s browser, a highly valuable role for which it pays Apple approximately $20 billion annually—around 36% of its search advertising revenue generated via Safari, analysts estimate. Losing this default spot could place significant pressure on Google, especially as it faces intense competition from AI startups like OpenAI and Perplexity. Apple has already partnered with OpenAI to offer ChatGPT as an option in Siri, while Google aims to secure a mid-year deal to integrate its Gemini AI technology into Apple’s latest devices. Following these developments, Alphabet shares dropped 6%, while Apple’s stock fell about 2%.

Neither company nor the DoJ responded to Reuters’ requests for comment. Cue expressed his belief that AI search providers, including OpenAI and Perplexity AI, will eventually supplant traditional search engines like Google. He indicated that Apple plans to include these AI options in Safari in the future. “We will add them to the list—they probably won’t be the default, ” Bloomberg News quoted Cue as saying. Last month, Google reassured concerned tech investors that its AI investments are boosting returns in its vital advertising business after surpassing expectations in first-quarter profit and revenue. “The loss of exclusivity at Apple should have very severe consequences for Google even if there are no further measures, ” said D. A. Davidson analyst Gil Luria. “Many advertisers currently place all of their search advertising with Google because it essentially operates as a monopoly with nearly 90% market share. If viable alternatives emerge, many advertisers might shift substantial portions of their ad budgets away from Google to these other platforms. ”