U.S. markets fell sharply Wednesday as Google parent Alphabet ($GOOGL) shares plunged following news that Apple ($AAPL) is considering adding AI-powered search capabilities to its Safari browser, a move that could threaten Google’s dominant search business.
According to Bloomberg, Apple is exploring partnerships and internal development of AI-driven search tools, aiming to integrate them directly into Safari and other Apple apps.
Market reaction:
- $GOOGL shares fell sharply, weighing on the broader Nasdaq and pulling the S&P 500 lower.
- $AAPL shares rose modestly on the news, as investors bet on the company’s push to expand its AI ecosystem.
Why it matters: Google currently pays Apple billions each year to remain the default search engine on iOS devices. If Apple rolls out its own AI search system, it could disrupt Google’s mobile search dominance and shift billions in ad revenue.
Investors are closely watching how fast Apple can deploy AI features — and how Google responds to defend its core business
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