The Vergecast Why Apple is trying to save Google
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May 9, 2025 The hosts dive into Eddy Cue's testimony about AI's rise and how Google pays Apple for search traffic. They discuss the shifting landscape with Meta's legal issues and Apple’s App Store challenges. Exciting tech innovations are reviewed, including Meta’s smart glasses and new iPhone designs. A humorous debate on Brendan Carr's antics and Netflix's new approaches rounds out the conversation, while the competition between Meta and TikTok reveals struggles in maintaining social relevance. The future tech landscape is full of surprises!
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AI Threatens Google's Search Monopoly
- Eddie Cue revealed Google searches in Safari are dropping for the first time in 22 years.
- This decline is likely due to AI-powered alternatives like Siri and ChatGPT replacing traditional search.
Apple's $20B from Google Stifles Innovation
- Apple earns $20 billion yearly from Google simply by defaulting Google as Safari's search engine.
- This revenue incentivizes Apple not to develop its own search engine and resist changes reducing this income.
Google's Search Profit Beats AI Costs
- AI search services like Perplexity lose money per search due to GPU costs and lack of monetization.
- Google can afford to pay Apple $20 billion and monetize search data, sustaining its dominant position.