Apple’s AI-Powered Safari Search Plans Challenge Google’s Online Dominance

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Apple’s move to introduce AI-powered search options in its Safari browser is emerging as a significant challenge to Google’s dominance in online search, with major implications for the tech and digital advertising landscape.

According to reports, Apple is “actively looking at” overhauling Safari by integrating new AI-based search alternatives such as OpenAI and Perplexity AI. This strategy directly targets Google, whose lucrative advertising business heavily depends on iPhone users searching via Safari — a privilege for which it reportedly pays Apple about $20 billion annually.

The development rattled investors, sending shares of Google-parent Alphabet (GOOGL) down 7.3% and erasing nearly $150 billion from its market valuation. Apple’s own stock dipped 1.1% on the same day.

Apple executive Eddy Cue testified during an antitrust case against Google that search activity on Safari had declined last month for the first time, as more users began relying on AI tools for information. This trend, if sustained, could mark a fundamental shift in consumer behavior — away from traditional keyword search engines and toward conversational AI and generative search technologies.

Google responded by asserting it continues to see growth in total search queries, including those from Apple devices, attributing the increase to tools like voice and visual search and newer features like “AI Overviews” that summarize results at the top of the search page. The company also plans to integrate its Gemini AI model into Apple devices through a potential deal expected by mid-2025.

Still, analysts warn that the end of Google’s default search position on Safari could have serious repercussions. Gil Luria of D.A. Davidson noted that if advertisers begin shifting budgets to competing AI-driven search engines, Google’s market share and revenue could suffer substantially.

Meanwhile, platforms like ChatGPT and Perplexity are gaining traction rapidly. ChatGPT, for instance, logged over 1 billion weekly searches in April and reported more than 400 million weekly active users in February.

The U.S. Department of Justice, which has filed multiple antitrust suits against Google, proposes banning exclusive deals like the one between Apple and Google as part of broader efforts to increase competition in the search market.

As generative AI reshapes how people seek and consume information, Apple’s Safari updates could open the door to a new era of search — one where Google is no longer the default.

Shopify Sees Resilient Revenue Growth Despite Tariff Concerns, Forecasts Strong Q2 Sales

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Shopify reported steady growth in merchant sign-ups and robust consumer demand despite rising trade tensions and tariff worries, helping to calm investors after a week of volatility for e-commerce stocks.

On Thursday, the Canadian e-commerce giant said it expects second-quarter revenue growth in the mid-20% range, topping Wall Street estimates of 22.4%, supported by AI-powered merchant tools and continued strength in online retail activity.

Key Takeaways:

  • AI assistant “Sidekick” doubled its monthly average user count since January, boosting merchant productivity and engagement.

  • Shopify’s GMV exposure to China via the expiring U.S. “de minimis” exemption is minimal — just 1%, reassuring investors.

  • Q2 gross profit growth expected in the high-teens, slightly below analyst expectations of 20.2%.

  • Higher cloud infrastructure costs and pricing adjustments on subscription plans are weighing on margins.

Despite the upbeat outlook, shares slipped 3% after premarket declines, reflecting broader investor anxiety around tariffs and trade uncertainty.

Leadership Commentary:

“Our business model is built for this uncertainty. It’s precisely in times like this that those building on Shopify are better prepared than those that are not,”
said President Harley Finkelstein during the earnings call.

Analyst Views:

  • D.A. Davidson’s Gil Luria noted investors remain highly sensitive to any downside risk:

    “Even the smallest miss triggers concern given fears around a new global tariff regime.”

  • Ken Wong of Oppenheimer acknowledged the quarter was solid but warned of lingering risks from ongoing macroeconomic headwinds.

Despite global trade uncertainties, Shopify’s strategic tech investments and platform resilience are helping it outpace sector peers, reinforcing its reputation as a dependable platform for merchants navigating economic turbulence.