Apple’s plans to add AI-powered search options to its Safari browser are a big blow to Google, whose lucrative advertising business relies significantly on iPhone customers using its search engine.
The news slammed shares of Google-parent Alphabet, which closed down 7.3 percent, wiping off roughly $150 billion from its market value.
The iPhone maker was “actively looking at” reshaping Safari, a source familiar with the matter told Reuters, citing Apple executive Eddy Cue who was offering testimony at an antitrust case on Wednesday over Google’s dominance in online search.
Cue said searches on Safari fell for the first time last month due to users increasingly turning to AI, according to the source. Apple stock closed down 1.1 percent.
Google said that it continued to see growth in the overall number of search queries, including “total queries coming from Apple’s devices and platforms,” according to a statement posted on the company’s blog.
“People are seeing that Google Search is more useful for more of their queries — and they’re accessing it for new things and in new ways,” the company wrote.
Google cited voice and visual search features as contributors to total search volume growth. It was unclear whether Cue was using the same basis of comparison in his testimony when analizing types of searches.
Still, the Apple executive’s comments suggests that a seismic shift in search is likely underway, threatening Google’s dominant search business — a go-to advertising destination for marketers that has now become a target for US antitrust regulators, which filed two major lawsuits against the company.
Google is the default search engine on Apple’s browser, a coveted position for which it pays the iPhone maker roughly $20 billion a year, or about 36 percent of its search advertising revenue generated through the Safari browser, analysts have estimated.
Banning Google from paying companies to be the default search engine is among the remedies that the US Justice Department has proposed to break up its dominance in online search.
“The loss of exclusivity at Apple should have very severe consequences for Google even if there are no further measures,” D.A. Davidson analyst Gil Luria said.
“Many advertisers have all of their search advertising with Google because it is practically a monopoly with almost 90 percent share. If there were other viable alternatives for search, many advertisers could move much of their ad budgets away from Google,” Luria said.
Google is not defenseless.
Written off as an also-ran in the AI race by critics after ChatGPT’s buzzy launch in late 2022, Google has reached into its deep pockets to fund its AI efforts and leverage its vast data trove.
The company introduced an “AI mode” on its search page earlier this year, looking to retain its millions of users from going away to other AI models.
It recently expanded AI Overviews — summaries that appear atop the traditional hyperlinks to relevant webpages on a search query — for users in more than 100 countries, and added advertisements to feature, boosting Search ad sales.
CEO Sundar Pichai said in a testimony at an antitrust trial last month that Google hopes to enter an agreement with Apple by the middle of this year to include its Gemini AI technology on new phones.
Apple’s Cue on Wednesday also said the company would add AI search providers, including OpenAI and Perplexity AI, as search options in the future, Bloomberg reported.
“(Apple’s plan) also shows how far generative search sites, such as ChatGPT and Perplexity have come,” said Yory Wurmser, principal analyst for advertising, media & technology at eMarketer.
That Google is willing to pay tens of billions of dollars to remain the default search engine shows how crucial the agreements are, Wurmser said.
For instance, ChatGPT in April reported seeing over 1 billion weekly web searches for its search feature. It has more than 400 million weekly active users, as of February
Apple’s plan to offer AI search options on Safari a blow to Google dominance
https://arab.news/63sx9
Apple’s plan to offer AI search options on Safari a blow to Google dominance
- Apple could add OpenAI, Perplexity as future search options
- The news slammed shares of Google-parent Alphabet, wiping off roughly $150 billion from its market value
Malaysia, Indonesia become first to block Musk’s Grok over AI deepfakes
- Authorities in both countries acted over the weekend, citing concerns about non-consensual and sexual deepfakes
- Regulators say existing controls cannot prevent fake pornographic content, especially involving women and minors
KUALA LUMPUR: Malaysia and Indonesia have become the first countries to block Grok, the artificial intelligence chatbot developed by Elon Musk’s xAI, after authorities said it was being misused to generate sexually explicit and non-consensual images.
The moves reflect growing global concern over generative AI tools that can produce realistic images, sound and text, while existing safeguards fail to prevent their abuse. The Grok chatbot, which is accessed through Musk’s social media platform X, has been criticized for generating manipulated images, including depictions of women in bikinis or sexually explicit poses, as well as images involving children.
Regulators in the two Southeast Asian nations said existing controls were not preventing the creation and spread of fake pornographic content, particularly involving women and minors. Indonesia’s government temporarily blocked access to Grok on Saturday, followed by Malaysia on Sunday.
“The government sees non-consensual sexual deepfakes as a serious violation of human rights, dignity and the safety of citizens in the digital space,” Indonesia’s Communication and Digital Affairs Minister Meutya Hafid said in a statement Saturday.
The ministry said the measure was intended to protect women, children and the broader community from fake pornographic content generated using AI.
Initial findings showed that Grok lacks effective safeguards to stop users from creating and distributing pornographic content based on real photos of Indonesian residents, Alexander Sabar, director general of digital space supervision, said in a separate statement. He said such practices risk violating privacy and image rights when photos are manipulated or shared without consent, causing psychological, social and reputational harm.
In Kuala Lumpur, the Malaysian Communications and Multimedia Commission ordered a temporary restriction on Grok on Sunday after what it said was “repeated misuse” of the tool to generate obscene, sexually explicit and non-consensual manipulated images, including content involving women and minors.
The regulator said notices issued this month to X Corp. and xAI demanding stronger safeguards drew responses that relied mainly on user reporting mechanisms.
“The restriction is imposed as a preventive and proportionate measure while legal and regulatory processes are ongoing,” it said, adding that access will remain blocked until effective safeguards are put in place.
Launched in 2023, Grok is free to use on X. Users can ask it questions on the social media platform and tag posts they’ve directly created or replies to posts from other users. Last summer the company added an image generator feature, Grok Imagine, that included a so-called “spicy mode” that can generate adult content.
The Southeast Asian restrictions come amid mounting scrutiny of Grok elsewhere, including in the European Union, Britain, India and France. Grok last week limited image generation and editing to paying users following a global backlash over sexualized deepfakes of people, but critics say it did not fully address the problem.
