Is this the end of Apple and Google cooperation? We have new news
Apple can break a longtime alliance with Google, replacing the classic search engine with artificial intelligence.
This is a step that can change the system of power in the technology industry and reduce the billion influence of the Mountain View giant.
APPLE and Google’s many years of partnership
Google has been paying huge commissions for over 20 years – up to $ 20 billion a year – to be a default search engine in Safari and on iOS devices. For both companies it was a convenient arrangement: Apple gained stable revenues, and Google access to billions of iPhone users.
And instead of a traditional search engine?
Today this partnership may end. Apple officially admits that it is testing search engines based on artificial intelligence, such as chatgpt, perplexity and claude, with Safari browser and Siri voice assistant. More and more users are giving up Google by choosing AI generating direct answers, not links.
Benefits of diversification and greater privacy
Apple can see the chance to diversify revenues: instead of one agreement with Google, the company could charge less commissions than many AI suppliers – as in the App Store. In addition, independence from one partner increases the Apple negotiating force and protects against market regulations.
Modern AI models also offer more personalized and private search results, which perfectly fits into the Apple strategy focused on the protection of personal data.
The risk of losing billion profits
On the other hand, a departure from Google would mean a loss of stable, pure profit for Apple, which supports the development of services and new products. Craig Federighi and Eddy Cue do not hide the fears: current AI models still do not match Google in terms of scale and accuracy. The reputational risk associated with any AI errors also remains high.
Google on the defensive, the market reacts nervously
For Google, the loss of the default search engine in Safari would be a financial and image blow. After the court speech of Apple, Alphabet quotations fell by more than 5 percent, which shows that the market takes the scenario of giants.
