The plans of Apple To add research options with IA to your Safari browser represent a big blow to Google, whose lucrative advertising business depends significantly on iPhone customers who use their research mechanism.
The news shook the shares of Alphabet, Google’s controlling company, which closed down 7.3%, eliminating about $ 150 billion (about $ 860 billion) from its market value.
The manufacturer of the iPhone was “actively analyzing” the reformulation of Safari, told a source familiar with the subject to Reuters, citing the executive of Apple Eddy Cue, who gave testimony in an antitrust case on Wednesday about Google domain in online search.
Cue stated that searches at Safari first fell last month due to the fact that users turn more and more to AI, according to the source. The actions of Apple They closed down 1.1%.
The comment suggests that a radical change in research is on its way, threatening Google’s dominant business – advertising destination for target marketing professionals for US competition defenses, which have filed two major processes against the company.
Google is the standard search engine in the browser of Applecoveted position for which he pays to the iPhone manufacturer about $ 20 billion per year, or about 36% of his search advertising revenue generated by the Safari browser, according to analysts estimates.
Forbidding Google from paying companies to be the standard search engines is among the solutions proposed by the US Department of Justice to end your domain in online search.
“The loss of the exclusivity of Apple It should have very serious consequences for Google, even if there are no other measures, ”said Gil Luria, Davidson’s analyst.
“Many advertisers have all their search advertising with Google because it is practically a monopoly with almost 90% participation. If there were other viable alternatives for the search, many advertisers could transfer much of their advertising budgets out of Google,” Luria said.
But Google is not helpless.
Considered by critics as an unlucky AI race after the trendy launch of ChatgPT at the end of 2022, Google used its full pockets to fund AI efforts and enjoy its vast data collection.
The company introduced an “AI” way on its research page earlier this year, seeking to prevent millions of users from migrating to other AI models.
Recently, it has expanded the general views of AI – Abstracts that appear on traditional hyperlinks for relevant web pages in a search consultation – for users in over 100 countries and added ads to the resource, increasing research ad sales.
By testifying in an antitrust trial last month, CEO Sundar Pichai said Google hopes to enter into an agreement with Apple By the middle of this year to include its Gemini technology on new phones.
On Wednesday (7), cue, from Applehe also said that the company would add AI research providers, including OpenAi and perplexity AI, as research options in the future, Bloomberg said.
“(The plan of Apple) It also shows how far the generative research sites have arrived, such as chatgPT and perplexity, ”said Yory Wurmser, eMarketer’s leading advertising, media and technology analyst.
The fact that Google is willing to pay dozens of billions of dollars to remain the standard search engine shows how crucial agreements are, Wurmser said.
For example, in April, ChatgPT said it had done over 1 billion weekly searches on the web. It had over 400 million active users a week in February.
Research shows impact of artificial intelligence on the future of work
This content was originally published in the IMA Search Apple plan plan in Safari threatens Google domain on CNN Brazil.
Source: CNN Brasil
Charles Grill is a tech-savvy writer with over 3 years of experience in the field. He writes on a variety of technology-related topics and has a strong focus on the latest advancements in the industry. He is connected with several online news websites and is currently contributing to a technology-focused platform.
