Google deal that Apple SVP Eddy Cue says he has "lost sleep over"

Apple's estimated $20 billion annual search agreement with Google faces an uncertain future as Safari searches declined for the first time in over two decades, according to testimony from Apple's Senior Vice President of Services Eddy Cue on Wednesday. The landmark deal, which makes Google the default search engine across Apple's devices, has become a critical revenue stream for Apple's services business while simultaneously coming under intense scrutiny in Google's ongoing antitrust trial."I've lost a lot of sleep thinking about it," Cue admitted during Google's antitrust trial, referring to the prospect of losing the lucrative revenue-sharing arrangement that makes Google the default search engine in Apple's Safari browser.The unprecedented decline in Safari searches last month marks a significant shift in user behavior that Cue attributes directly to the rising popularity of AI-powered alternatives. "That has never happened in 22 years," Cue testified, pointing to services like ChatGPT, Perplexity, and Anthropic as potentially reshaping how users find information online.In response, Apple is "actively looking at" integrating AI search engines into Safari, though Cue noted they "probably won't be the default" as they still need improvement. The company has already had discussions with Perplexity and currently offers OpenAI's ChatGPT as an option in Siri.The testimony comes amid Judge Amit Mehta's ruling that Google illegally monopolized the online search market partly through agreements like its Safari deal. The Department of Justice is now seeking remedies that could include forcing Google to share search data with competitors and spin off its Chrome browser.Despite the potential disruption to Apple's revenue stream, Cue expressed confidence in AI's transformative power, suggesting that technological shifts create opportunities for new competitors to emerge. "There's enough money now, enough large players, that I don't see how it doesn't happen," he said regarding the eventual transition from traditional search to AI-powered alternatives.However, Cue maintained that Google should remain Safari's default search engine for now, as their agreement still offers "the best financial terms" for Apple's services division.