Ammon News - Apple's plans to add AI-powered search options to its Safari browser are a big blow to Google, whose lucrative advertising business relies significantly on iPhone customers using its search engine.

The news slammed shares of Google-parent Alphabet which closed down 7.3%, wiping off roughly $150 billion from its market value.

The iPhone maker was "actively looking at" reshaping Safari, a source familiar with the matter told Reuters, citing Apple executive Eddy Cue who was offering testimony at an antitrust case on Wednesday over Google's dominance in online search.

Cue said searches on Safari fell for the first time last month due to users increasingly turning to AI, according to the source. Apple stock closed down 1.1%.