AI Could Overtake Google Search, Shaking Up Big Tech, Hints Apple’s Eddy Cue

Apple and Alphabet both took a hit on Wednesday after a courtroom comment from Eddy Cue, Apple’s head of services, sent shockwaves through the tech world. Cue said he believes AI-driven tools will eventually take over from traditional search engines like Google. That statement, reported by Bloomberg, helped push Alphabet shares down over 7%, with Apple stock also slipping by 2%.

Cue’s remarks came as he testified in a Washington D.C. federal court during the ongoing antitrust case against Google. The U.S. Justice Department is trying to prove that Google maintains an illegal monopoly in online search, largely through deals like the one it has with Apple — where Google reportedly pays Apple up to $20 billion a year to remain the default search engine on iPhones.

That deal is under scrutiny, and Cue’s testimony revealed some internal concerns. While he said Google should remain the default for now, he admitted that he’s worried about losing that revenue stream. “I’ve lost sleep over it,” he reportedly told the court.

But Cue also made it clear that the search landscape is changing. He said Apple is exploring adding AI-driven tools like OpenAI, Perplexity, and Anthropic to Safari, offering users more intelligent, AI-powered alternatives to standard search.

Cue also noted a drop in Safari search volume in April — the first decline Apple has seen — and linked it directly to the growing use of AI tools for finding information.

For Google, the stakes are high. The outcome of the case could affect its dominance in search and disrupt the core of its advertising empire. For Apple, there’s risk too. The default search deal is incredibly lucrative, and shifting away from it could create short-term pain — even if the company is eyeing longer-term AI opportunities.

One thing is clear: traditional search is under pressure, and the courtroom drama could be a preview of even bigger changes to come in how we all find information online.