Bitcoin Mining Meets AI: Apple's Unexpected AI Search Bid
- by Malte Mansholt
- 3 Min
Apple intends to displace Google on your iPhone by integrating artificial intelligence more prominently. - Apple envisions replacing Google services on iPhones with AI integrations.
A rare sweeping back the curtains in technology's secrecy chamber: Apple, known for its closed-door dealings, has to speak up about discussions they typically keep under wraps. It's about collaborating with Google, AI on Apple devices - and the future of the iPhone.
The occasion is a court case, in which Apple doesn't hold the spotlight; rather, it supports the US authorities' case against Google. The tech titan is suspected of misusing a monopoly position. Apple's role: For Google to remain the default search engine in Apple's Safari browser on iPhone, iPad, and Mac, its parent company Alphabet is rumored to pay around $20 billion annually. This deal may soon falter. But Apple sees a greater threat looming for Google.
Unexpected Allies
Apple's Senior Vice President of Online Services, Eddy Cue, shed light on this during a court hearing in Washington D.C. on Tuesday. In an unexpected move, he revealed that, for the first time in 22 years, the number of search queries via Safari decreased in April. His speculation: folks are increasingly having their questions answered by speech KIs like ChatGPT and AI-powered search engines rather than traditional internet search.
Apple is looking to tap into this trend, Cue acknowledged. He specifically mentioned AI services like Perplexity, ChatGPT, and Claude, which he believes could one day supersede search engines like Google. However, in its current state, they're not up to par, he feels. "We will certainly add them to the list of search engines in Safari," Cue clarified. "But they won't be the default." Apple currently offers a slew of search engine options for users to choose from, with Google being the default in most countries.
Reluctant Dependance
And it ought to stay that way, Cue argues. "We really don't have a choice," he stated when asked about alternatives. Google's excellence is unparalleled, he claims. Even without financial compensation from Google, Apple would still rely on Google, according to Cue. If forced by the court to forgo Google's payment, the outcome would be the same—except Google would save money, and Apple would lose a multibillion-dollar deal. "That just feels crazy to me," Cue remarked.
Judge Amit Mehta's assertion that Apple lacks incentive to develop its own search engine due to the Google deal is something Cue can't dispute. "I can't say I see it differently," he admitted. However, whether Apple wants to or not is a different matter. "We can't do everything," Cue believes. Speculation about Apple creating its own search engine has circulated for years, but no such development has emerged.
But the shift to AI-powered search engines could impact the market quickly, Cue believes. "None of them are good enough yet" to truly challenge Google, he concedes, but that could change rapidly. "Before AI," he explains, "it always felt like there was no really good alternative. But today, the potential is much greater because the newcomers are tackling the problem with completely different approaches."
Post-iPhone Era
Incidentally, Cue also admitted during his testimony that even Apple's crown jewel - the iPhone - could suffer under the transformative impact of AI. "We're not an oil company, we don't make toothpaste," Cue says. "Those things will always be needed. But that doesn't mean you'll still need an iPhone in ten years."
This statement might come as a surprise, given that the iPhone still contributes nearly half of Apple's revenue. For Cue, it's all about continuous innovation. He compares it to the time when Apple decided to discontinue the iPod. "Why would anyone kill the golden goose?" they said about Apple's most successful product back then. But Apple made its decision, channeling all its energy into the iPhone. It was, Cue asserts, the best decision the company ever made. But he didn't reveal which Apple product might potentially replace the iPhone.
Sources: Bloomberg, The Verge
- iPhone
- Apple
- Eddy Cue
- Search Engine
- Smartphone
- ChatGPT
- iPad
- Mac
Enrichment Data:
Overview:
Apple is actively planning to incorporate AI-powered search engines, including ChatGPT (from OpenAI), Perplexity, and Claude (from Anthropic), directly into its Safari browser. This integration aims to reshape the browsing and search experience by embedding advanced AI capabilities that offer more interactive, contextually relevant, and dynamic search results compared to traditional keyword-based search engines like Google[2][3][4][5].
Key Details of Apple's AI Integration Plans in Safari
- Inclusion of AI Search Engines as Options: Apple intends to add these AI tools as alternative search engine options within Safari, allowing users to select them alongside or instead of conventional search engines[2][4].
- Potential to Replace Google as Default: While these AI services will be part of Safari’s available search options initially, Apple’s Senior Vice President of Services, Eddy Cue, has indicated that they might not immediately become the default search engines due to their need for further development. However, Apple believes the growth and potential of AI search engines will eventually displace Google’s dominant position as the default search provider on iPhones[2][3][4].
- Driver Behind the Shift: Cue attributed the decline in Safari searches partly to users shifting toward AI-powered search alternatives. This behavioral change signals a significant technology shift toward AI-based search systems, motivating Apple to adapt Safari accordingly[2][3][4].
- Background Context: Apple’s current default search engine arrangement with Google involves a substantial financial agreement, reportedly worth around $20 billion annually. The ongoing U.S. Justice Department lawsuit challenging this deal has also brought attention to Apple’s aspirations to diversify and potentially reduce reliance on Google search[2][3][4].
- Discussions with AI Providers: Apple has already held talks with Perplexity AI, indicating active collaboration efforts to integrate AI search capabilities into Safari[2][3][4].
Broader Implications
This strategic move aligns with a broader technology shift toward AI-enhanced applications, reflecting Apple's goal to innovate Safari’s user experience and assert more control over the search ecosystem on its devices. By embedding AI search engines, Apple could provide more natural, conversational, and intelligent search interactions for users, potentially transforming how search works on iPhones and other Apple devices[4][5].
- In light of the potential shift towards AI-powered search engines, The following are the types of data that Apple is considering incorporating into its Safari browser: finance, investing, business, technology, and artificial-intelligence.
- The integration of AI search engines like Perplexity, ChatGPT, and Claude into Safari could provide a unique browsing experience for Apple users, with a focus on dynamic, contextually relevant, and more interactive search results, thus challenging the dominance of traditional search engines like Google in these sectors.
- The future of the iPhone and other Apple devices might not only be about hardware but also about software innovations, particularly in the realm of artificial-intelligence search, as Eddy Cue hinted during his testimony, signaling a potential transformation in both the business and technology sectors.
