Is Apple Betting Its Future on AI Search as Google’s $20B Deal Crumbles?

Apple’s Safari browser is at a crossroads—and AI might be its lifeline. For years, Google has paid Apple billions to remain Safari’s default search engine, but now users are ditching traditional search for AI chatbots like ChatGPT. With Safari searches declining for the first time ever and regulators threatening to dismantle Apple’s lucrative Google deal, the tech giant is scrambling to partner with AI upstarts like Perplexity and Anthropic. But can AI save Apple’s $20 billion cash cow—or is this a desperate gamble? Let’s dive in.

💸 The $20 Billion Problem: Why Apple Can’t Afford to Lose Google

April 2025 marked a historic drop in Safari searches—a direct hit to Apple’s revenue, which earns ~$20B/year from Google’s ad-sharing deal.
Regulatory time bomb: The ongoing U.S. v. Google monopoly case could force Apple to abandon its default search arrangement, costing it up to 15% of annual services revenue.
AI’s silent takeover: Users increasingly bypass search engines for AI tools that synthesize answers (e.g., ChatGPT handled 10B queries in Q1 2025 alone).

silver iMac, keyboard, and mouse — Photo by Alex Bachor / Unsplash

✅ Apple’s AI Playbook: Partner Now, Profit Later

New Safari AI integrations: Apple SVP Eddy Cue confirmed plans to add AI providers like Perplexity and Anthropic to Safari—though likely not as defaults initially.
Revenue-sharing ambitions: Apple wants AI partners to match Google’s ad-revenue cuts, but Cue admits they need to “improve…richer search indexes” first.
ChatGPT precedent: Apple’s free Siri-ChatGPT integration (no revenue split) shows willingness to trade exposure for AI credibility—a model that might extend to Safari.

🚧 Three Roadblocks to Apple’s AI Search Revolution

1. The Money Maze: AI chatbots like Perplexity rely on subscriptions, not ads. If Apple can’t replicate Google’s ad revenue, its $20B golden goose dies.
2. Regulatory Target: Adding AI partners mid-monopoly trial risks appearing anticompetitive. Regulators could block deals that favor certain providers.
3. AI’s Limits: Current AI models struggle with real-time data (e.g., sports scores, news)—a gap Google still dominates. Until AI catches up, users might keep two tabs open.

🚀 Final Thoughts: Can Apple Reinvent Search—or Just Redistribute Power?

Apple’s AI pivot feels inevitable, but success isn’t guaranteed. To win:

📈 Monetize without alienating: Forcing ads into AI answers could backfire (users hate clunky transitions).
🤝 Partner smarter: A multi-AI Safari menu (like ChatGPT + Perplexity + Google) lets users choose—and keeps regulators at bay.
💡 Innovate beyond Siri: Deeper OS-level AI (e.g., auto-summarizing web pages) could make Safari indispensable again.

But here’s the kicker: If AI truly kills traditional search, does Apple need Google—or any partner—at all? What do YOU think?

Let us know on X (Former Twitter)

Sources: Benjamin Mayo. Apple to add AI search partners to Safari as Google usage falls, May 7 2025. https://9to5mac.com/2025/05/07/apple-ai-search-partner-safari-google/