Google (GOOG, GOOGL) stock dropped more than 6% Wednesday after Apple’s senior vice president of services, Eddy Cue, revealed that Apple (AAPL) is exploring adding AI search engines such as Perplexity to its default Safari web browser.

Cue’s comments came during Google-parent Alphabet’s antitrust trial, according to Bloomberg. Last year, a federal judge ruled that Google maintained an illegal monopoly through its search business. During the trial it was revealed that Google pays Apple $20 billion a year to use its search engine as the default search option in Safari.

During his testimony, Cue said that Apple saw a drop in searchers in Safari for the first time last month, attributing the move to customers increasingly opting for AI-based search options. Apple already offers ChatGPT as a search option as part of its Apple Intelligence platform.

While Cue said Apple won’t replace Google as its default option, out of fear of losing the revenue its deal generates, he said he believes AI search apps will eventually replace standard search engines.

Google has been working feverishly to ensure it catches up with AI startups like OpenAI and Perplexity to ensure it grabs a hold of the AI search market. The company has already released its AI Overviews, generative AI-based responses to user queries, in standard Google Search, and is currently testing its AI Mode, which more closely resembles apps like ChatGPT search and Perplexity.

Google already provides an AI search competitor in the form of its Gemini search option, but it’s a separate option from Google Search. Microsoft also has an AI competitor in its Copilot Search option.

Google’s exclusivity deal with Apple is one of many the search giant has set up to ensure its search engine remains top of mind for users around the world. The company has also made deals with partners like Samsung, which also includes the company’s various apps in its smartphones.

Apple relies on Google’s deal for revenue as part of its Services business. Services saw sales of $96.1 billion in 2024, making that $20 billion per year an important part of the segment.

Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.

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