Apple is partnering with Google to power its upcoming artificial intelligence features – including a long-delayed AI overhaul of its Siri voice assistant, the tech giants revealed Monday.
Under the “multi-year collaboration,” Apple’s AI infrastructure will be “based on Google’s Gemini models and cloud technology,” the companies said in a joint statement.
“These models will help power future Apple Intelligence features, including a more personalized Siri coming this year.
“After careful evaluation, Apple determined that Google’s Al technology provides the most capable foundation for Apple Foundation Models and is excited about the innovative new experiences it will unlock for Apple users,” the statement added. “Apple Intelligence will continue to run on Apple devices and Private Cloud Compute, while maintaining Apple’s industry-leading privacy standards.”
Google parent Alphabet’s shares rose about 1% immediately after the announcement, which briefly established Alphabet as the fourth company to achieve a $4 trillion market capitalization. Nvidia, Apple and Microsoft previously crossed the threshold.
Alphabet was hovering near the $4 trillion mark in mid-morning trading as it seesawed between positive and negative territory. Apple shares were unchanged.
The statement was first obtained by CNBC.
The deal has major implications for Apple, which has been under immense pressure as it struggled to implement AI features for its iPhone and other devices.
Apple was forced to delay its much-hyped Siri makeover after encountering bugs and glitches during development – a situation one executive at the Cupertino, Calif.-based company reportedly described as “ugly.”
Wedbush analyst Dan Ives said the deal was “much needed” in the eyes of Wall Street.
“This is what the Street has been waiting for with the elephant in the room for Cupertino revolving around its invisible AI strategy, but we believe this is an incremental positive to both AAPL and GOOGL as a major validation moment for Google as a premier foundation model and for Apple as a stepping stone to accelerate its AI strategy into 2026 and beyond,” he said in a note to investors.
Apple was in talks with Google to use a custom version of Gemini for its AI version of Siri, Bloomberg reported last year. The outlet said Apple was planning to pay about $1 billion per year for access to Gemini.
Monday’s announcement didn’t put a dollar figure on the deal.
Apple recently shook up leadership of its AI division, hiring Amar Subramanya, a veteran of Google and Microsoft, to take over as its vice president of artificial intelligence. John Giannandrea, who had served as Apple’s senior vice president of machine learning and AI strategy since 2018, stepped down.
Meanwhile, the Apple-Google AI deal may draw the ire of antitrust hawks, who have long criticized their collaboration on online search.
Last year, US District Judge Amit Mehta sparked an uproar after ruling that Google has a monopoly over online search, but determining it could still pay Apple to ensure its search engine is enabled by default on iPhones.
Google paid Apple an estimated $25 billion in fiscal 2024 alone for default search engine status.
The Post has sought comment from Apple and Google
