Apple and Google Investors Fret as ChatGPT Gains Search Ground
SMRTR summary
Tech giants Apple and Google are feeling the heat as AI-powered search engines gain traction. During testimony in a Justice Department lawsuit, Apple executive Eddy Cue revealed that Google searches on Safari decreased for the first time last month, attributing the shift to AI alternatives like ChatGPT.
This revelation sent shockwaves through Wall Street, with Google's shares dropping 8% and $150 billion in market value evaporating. Apple is now exploring AI search options for Safari, potentially disrupting its lucrative revenue-sharing deal with Google.
Analyst Dilantha De Silva notes, "Apple has to cater to the growing demand for consumer AI features." Meanwhile, OpenAI is making moves to dominate the consumer market, recruiting Instacart's CEO to lead its applications business.
As the search landscape evolves, tech giants are scrambling to adapt to the AI revolution, with billions in revenue at stake.
SMRTR provides this summary for quick context. The original article belongs to PYMNTS.
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