In a dramatic shift that could reshape the digital landscape, Apple is actively developing artificial intelligence-powered search capabilities that could eventually replace Google as the default search engine in Safari, according to recent testimony and reports. This strategic move comes amid Apple’s $15 billion annual deal with Google and growing regulatory scrutiny of big tech relationships.

During testimony in the Department of Justice’s antitrust case against Google, Apple’s senior vice president of services, Eddy Cue, revealed that the company has been working on AI-powered search technology. “We are working on AI search,” Cue acknowledged under oath, confirming what many industry analysts had long suspected about Apple’s ambitions in the search space.

The revelation sent ripples through financial markets, with major tech stocks experiencing downward pressure. Google’s parent company Alphabet saw its shares decline on the news, as investors processed the potential implications of losing Apple’s massive user base as a captive audience.

Apple’s current arrangement with Google, which makes the search giant the default option on Safari browsers across iPhones, iPads, and Mac computers, generates approximately $15 billion in annual revenue for Apple. This lucrative partnership has been a cornerstone of Apple’s services business growth but has increasingly drawn the attention of regulators concerned about competition in the digital marketplace.

The timing of Apple’s search development efforts coincides with broader industry shifts toward AI integration. The company has been investing heavily in artificial intelligence capabilities, recently announcing its Apple Intelligence initiative that brings advanced AI features to its devices. Extending these capabilities into search functionality represents a natural progression of Apple’s strategy.

Industry experts suggest that Apple’s approach would likely differ significantly from Google’s traditional search model. Rather than focusing primarily on web indexing, Apple could leverage its AI capabilities to create a more personalized, contextually aware search experience that prioritizes user privacy—a core brand value for the company.

The development also comes as Apple faces pressure from multiple directions. Regulatory bodies worldwide have questioned the Google search deal, while competitors like Microsoft’s Bing and privacy-focused alternatives like DuckDuckGo have been making incremental gains in the search market.

For users, an Apple-developed search engine could potentially offer deeper integration with the company’s ecosystem of devices and services. However, building a competitive search alternative to Google, which has spent decades refining its algorithms and indexing the web, presents significant technical challenges.

Apple has not provided a timeline for when its AI search capabilities might be ready for public deployment, and the company typically maintains strict secrecy around product development. The transition, if it occurs, would likely be gradual rather than abrupt, potentially beginning with specific verticals or use cases before expanding to general web search.

The potential disruption to the search market cannot be overstated. Google has maintained dominance in search for decades, with its algorithms effectively serving as the gateway to the internet for billions of users. Apple’s entrance into this space, backed by its massive installed base of devices and reputation for user experience, could represent the most significant challenge to Google’s search hegemony in years.

As this story develops, both companies face critical strategic decisions that will influence not just their own futures, but how users around the world discover and access information online.