Apple's plan to offer AI search on Safari is a blow to Google

Apple's plans to add Al-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.

- ADITYA SONI JODY GODOY

The news slammed shares of Google-parent Alphabet, which closed down 7.3%, 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.

Mr 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%.

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 Mr Cue was using the same basis of comparison in his testimony when analysing types of searches.