Google plunges as Apple hints at AI search for browsers

Catch up quick: Apple executive Eddy Cue disclosed the AI explorations Wednesday during testimony in federal court, Bloomberg reported.

• The news agency quoted Cue as saying Apple was "actively looking at" retooling Safari to focus on AI search.

By the numbers: Alphabet shares were 9.3% lower in midday trading, wiping more than $80 billion off the company's market capitalization.

• The sharp decline weighed on broader markets, with the Nasdaq turning negative on the news.

💭 Thought bubble: The Google search deal is hugely lucrative for both sides, so Apple is likely weighing options if that arrangement goes away, Axios chief tech correspondent Ina Fried writes.

• In traditional search the only realistic option is Microsoft, so adding AI players brings in some competition.
• Microsoft winning the deal wouldn't necessarily be a major competitive threat to Google, but an AI player getting the business could turn them into a stronger Google rival.

Yes, but: None of the AI-powered search engines has a revenue side that compares to Google.

• OpenAI's search engine doesn't even have ads, yet.

Editor's note: This story has been updated with additional details on the search market.