Alphabet shares saw their worst decline in months after an Apple executive testified that the iPhone maker may reshape its Safari browser to focus on AI-powered search engines and move away from Google as the default search provider.

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Apple is exploring the possibility of introducing new AI-powered search options for its Safari browser, according to testimony by Apple executive Eddie Cue. The statement was made during a U.S. Department of Justice hearing concerning Google's monopoly in the search industry. Cue mentioned that Apple is considering partnering with AI companies including OpenAI, Anthropic, and Perplexity to broaden their search engine offerings. This consideration comes amid a reported drop in user searches on Google's platform and Apple's search engine in April.

Alphabet, Google's parent company, experienced a significant 7% drop in its stock price following Cue’s testimony, marking one of the most notable declines in recent months. The revelation hints at Apple's potential shift to integrate generative AI search models from various companies. Currently, Google remains the default search engine on Apple devices, a partnership valued at approximately $20 billion. However, Apple is actively exploring alternatives due to changing user behavior, as more individuals turn towards generative AI products for search functions.

Eddie Cue's comments reflect an acknowledgment of the rapidly evolving AI landscape, where multiple competitors present diverse solutions. While Apple has not committed to a specific partner for a default search engine, the company is considering its options carefully. Apple has also decided not to develop its own generative AI products for now, prioritizing collaborations with established AI entities. Apple remains cautious in rolling out new products, adhering to high standards for any integration into their ecosystem.



Apple exploring AI search options in move away from Google

Apple executive Eddie Q is saying that the iPhone maker is exploring adding a search to its browser. Now this is sending alphabet. The parent of Google's shares lower by some 7 percent as we speak. Pretty much Jackie Davos has the inside scoop. Ultimately this is being said in court. The D.O.J. remedy hearing about how Google tackles what judge deems its monopoly in search. Any Q giving evidence. And it seems to be quite shocking to many. Absolutely. Because for the first time we have the prospect of Apple bringing others into the fold. Eddie Q actually name checked a couple of the A.I. companies that are toying with their LLM models in search perplexity being a big one. It also named Anthropic and Open A.I. as possible partners quote adding them to the list that they would consider adding to their search engine forever. Now it's been Google being the exclusive partner. Obviously the core of this dispute going on with the D.O.J. But what this is really showing is an acknowledgement that they can't do it alone here that they have to really find new ways to engage people and how and adapt how they search for things on their phone. He also revealed that for the first time in April the number of people searching in Google or in in the Apple search actually fell. That kind of engagement shift is showing that they're going to need to adapt and bringing others kind of as part of this list is the first step in doing that. So basically not turning to Safari to search. He's theorizing any cue that people are using generative A.I. products instead. And as you mentioned he name checks a few but says they will not likely become default. Does that therefore mean that they're still going to be working alongside Alpha Alpha has its own generative via A.I. offerings. Could it be interwoven into Safari. Does this sort of knee jerk reaction need more exploring. It certainly shows that there's competition. And when it comes to large language models there's a new model out almost every month these days. And I think it shows an openness to remaining nimble with the different players out there. It might be open A.I. one day but you have other very smart competitors like a perplexity. So it really shows that they're not taking a one company approach this time. They're going to diversify. And of course in many way the one company approach the 20 billion dollars they receive and payments from Google to making them a default is what's at question here. And did you saying it does keep him up at night. The worry about losing that revenue. But going back to already the relationship that Apple has with open A.I. we know that Apple has decided it's not going to be building its own generative A.I. products thus far. It's going to be intertwining others. So would that mean open A.I. gets the leg up here. Possibly. I think at this point they're looking for a reliable partner. As you know Caroline Apple is extremely cautious when it comes to rolling out new products and new services features. They're not going to do it if it's not done well. Obviously with their conference coming up in a couple of months it's going to be interesting to see what they have to show for the last year at the last developer conference. I was a big theme that we were finally going to get to see these A.I. features. Siri has been somewhat of a disappointment. But opening I certainly just given their scope and scale the familiarity people already have with their tools might give them a leg up in this case.

Officials in the U.S. state of Texas say at least 13 people have died in overnight flash floods after torrential rains triggered an overflow of the Guadalupe River. Nearly 20 children attending a summer camp in the south-central area are missing.

Kerr County

Deadly Texas floods: Search efforts underway for missing children

Türkiye has been battling wildfires for more than a week, with its western province of Izmir among the hardest hit. Thousands have been forced to flee as flames threaten homes and villages.

Ödemiş

Turkiye wildfires: At least two dead as fires burn for eighth day

It was not clear if Hamas’ statement meant it had accepted the proposal from US President Donald Trump for a 60-day ceasefire.

Jerusalem

Hamas says it is  'positive' about latest ceasefire proposal

President Trump brought pomp and circumstance to his signing of the "big, beautiful bill" on Friday, with an Independence Day ceremony at the White House that included a B-2 bomber flyover.

Washington

Global Tariffs

Trump signs "big, beautiful bill" as tariff deadline looms

Heavy rainfall in central Texas caused the Guadalupe River to overflow and unleash a torrent of water. The bodies of at least 13 children and adults have been recovered and more than 20 girls are missing from a sleepaway camp.

Floods kill at least 13 in Texas, over 20 missing from summer camp

The talk comes a day after President Donald Trump and Russian President Vladimir Putin discussed Ukraine, Iran and other issues in a call the Kremlin described as "frank and constructive."

Kyiv

Ukraine Invasion

Zelenskyy, Trump agree on joint defense efforts in phone call

Russia pummeled Kyiv with the largest drone attack of the war, injuring at least 23 people and damaging buildings across the capital only hours after U.S. President Donald Trump spoke with Russia's Vladimir Putin, officials said.

Russia hits Kyiv with largest drone attack after Trump-Putin call

U.S. President Donald Trump marked the passage of the new spending bill, which includes changes to food assistance, student loan programs, and clean energy credits. Robert Costa joins "CBS Mornings" to break down what's in the legislation.

Trump set to sign "big, beautiful bill"

More than 80 Palestinians were killed in Gaza on Thursday (July 3), according to health officials, as Israel intensified its strikes, hitting a school-turned-displacement facility. CNN’s Paula Hancocks looks at the damage and humanitarian toll.

More than 80 people killed in Gaza in one day

Ukrainian President Volodymyr Zelenskyy said Kyiv will do "anything" to advance EU accession talks. Zelenskyy spoke alongside Danish Prime Minister Mette Frederiksen, President of the European Council António Costa and President of the European Commission Ursula von der Leyen.

Ukraine will do 'anything' to advance EU accession talks: Zelenskyy

President Donald Trump said Washington will start sending letters to countries on Friday specifying what tariff rates they will face on imports to the United States, a clear shift from earlier pledges to strike scores of individual deals.

Trump: Letters telling countries their tariff rate going out Friday

Indonesian rescuers on Thursday (July 3) temporarily halted a search for 30 people still missing after a ferry carrying 65 people sank near the island of Bali with the loss of six lives, the national search and rescue agency said.

Gilimanuk

Indonesia suspends search for 30 missing after ferry sinks near Bali

After marathon debate sessions in the Senate and House, President Donald Trump’s budget bill passed in the House. Republicans secured the biggest win of Trump’s presidency.

Trump’s landmark ‘big, beautiful bill’ narrowly passes U.S. House

Florida says the first group of migrant detainees have arrived at the new immigration detention center known as "Alligator Alcatraz." CBS News correspondent Shanelle Kaul has more.

Ochopee

First group of detainees arrive at "Alligator Alcatraz," Florida says

U.S. President Donald Trump said Thursday (July 3) that he spoke with Russian President Vladimir Putin and that he plans to hold a call with Ukrainian President Volodymyr Zelenskyy. CBS News White House reporter Willie James Inman has more.

Trump speaks with Putin, plans call with Zelenskyy

CNN’s Priscilla Alvarez reports on a lawsuit from lawyers for Kilmar Abrego Garcia alleging he suffered “torture and mistreatment” after he was wrongfully deported and held in El Salvador’s notorious mega prison.

Tecoluca

Kilmar Abrego Garcia claims he was tortured in El Salvadoran prison

The Kremlin welcomed the development, with spokesman Dmitry Peskov claiming it proves Western arsenals are being depleted and predicting that less aid will hasten the end of the conflict.

U.S. pauses military aid to Ukraine over depleted weapons stockpile

Two contractors employed by UG Solutions spoke to the AP on condition of anonymity as they were revealing their employers’ internal operations.

U.S. contractors say live ammo used at Gaza aid distribution site

Democratic leader Hakeem Jeffries spoke for hours on the House floor about potential impacts of President Trump's "big, beautiful bill" that Republicans are looking to pass before July 4. Following debate, the House is set for a final vote on the massive budget bill.

House debates Trump's 'big, beautiful bill' ahead of final vote

CBS News political contributor Caroline Polisi joins "CBS Mornings" to break down the jury's verdict in Sean "Diddy" Combs' federal trial and the judge's decision to deny bail for the music mogul ahead of his sentencing.

Manhattan

Sean "Diddy" Combs denied bail after split verdict

Liverpool soccer player Diogo Jota has died aged 28, just weeks after marrying his childhood sweetheart. The footballer passed away in a car crash in northern Spain.

Madrid

Liverpool soccer player dies in car crash 10 days after wedding

The Pentagon said that U.S. strikes 10 days ago had degraded Iran's nuclear program by up to two years, suggesting the U.S. military operation likely achieved its goals despite a far more cautious initial assessment that leaked to the public.

Tehran

Iran Strikes

Iran nuclear program degraded by up to two years: Pentagon

Days before his 90th birthday, the Dalai Lama announced the Gaden Phodrang Trust, a non-profit he founded, will have the sole authority to recognize his future reincarnation, but China insists it will choose the successor of the Tibetan spiritual leader.

Lhasa

China rejects Dalai Lama’s succession plan

The U.S. Congress inched towards approving President Donald Trump’s Big Beautiful Bill, despite attempts by Democrats to stop it. The bill is Trump’s signature legislation which includes massive spending increases on the military and immigration enforcement while slashing social programs.

Trump’s Big Beautiful Bill nears approval

Sean (Diddy) Combs was found guilty on prostitution-related charges, but was acquitted on more serious charges of racketeering and sex trafficking giving him a maximum sentence of 20 years. But the courtroom victory was subdued following a judge’s ruling to deny him bail.

New York

Diddy denied bail, avoids life in prison

President Trump says Israel has agreed to a 60-day ceasefire in Gaza, but it remains unclear if Hamas will accept the terms. CBS News senior foreign correspondent Debora Patta has more.

Trump says Israel has agreed to Gaza ceasefire conditions

Bryan Kohberger changed his plea to guilty Wednesday for the 2022 murders of four University of Idaho students. CBS News national correspondent Carter Evans has more on the case.

Boise

New details revealed as Kohberger pleads guilty for 2022 Idaho murders

The Wisconsin Supreme Court struck down a state abortion law that was adopted in 1849 in a 4-3 landmark decision. CBS News' Shanelle Kaul reports.

Madison

Wisconsin Supreme Court strikes down 176-year-old state abortion ban

Macron and Putin held regular discussions around the start of Russia's invasion of Ukraine, with Macron visiting Putin in Russia in February 2022, but dialogue eventually stalled.

Paris

Macron held 'substantial' phone call with Putin

President Trump toured “Alligator Alcatraz,” a migrant detention center he teamed up with Ron DeSantis to build in the Everglades.

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Rise of AI