Key Takeaways
- Apple and Alphabet have reached a deal for Google’s Gemini to power Siri’s artificial intelligence capabilities
- The partnership will help power future Apple Intelligence features, including a more personalized Siri
- The deal is seen as a major validation moment for Google as a premier foundation model and for Apple as a stepping stone to accelerate its AI strategy
- Apple had been lagging behind in the AI assistant race, but this deal is expected to help the company catch up
- The partnership is not unprecedented, as Google has been the default search engine on Apple’s iPhones for many years
Introduction to the Deal
Apple and Alphabet have announced a significant partnership, with Google’s Gemini set to power Siri’s artificial intelligence capabilities. According to a statement from the companies, "After careful evaluation, Apple determined that Google’s AI technology provides the most capable foundation for Apple Foundation Models and is excited about the innovative new experiences it will unlock for Apple users." This deal is expected to have a major impact on the tech industry, with shares of Alphabet stock jumping as much as 1% following the news.
Background on the Partnership
Speculation about a potential deal between Apple and Google had been circulating since last year, with Bloomberg reporting in November that Apple was considering paying $1 billion a year to use the Gemini model. As Wedbush analysts noted, "This is what the Street has been waiting for with the elephant in the room for Cupertino revolving around its invisible AI strategy." The deal is seen 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. Apple had a head start in the AI assistant race when it launched Siri on its iOS devices in 2011, but the company has lagged behind the competition following the launch of ChatGPT in late 2022.
Impact on the Companies
For Google, the integration with the leading mobile phone platform in the US is a significant distribution advantage. As Thomas Hudson, a VP principal analyst at Forrester, noted, "The deal could look counterintuitive" given Apple and Google’s competition in the smartphone market. However, he pointed to Google’s long-running deal to make it the default search engine on Apple’s iPhones as an example of how the pair have partnered before. The deal is expected to help Apple catch up in the AI assistant race, with the company planning to launch a more personalized Siri later this year. As the companies stated, "These models would help power future Apple Intelligence features, including a more personalized Siri coming this year."
Industry Implications
The partnership between Apple and Google has significant implications for the tech industry. As Wedbush analysts noted, the deal 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." The deal also highlights the increasing importance of artificial intelligence in the tech industry, with companies competing to develop the most advanced AI capabilities. As the companies continue to develop and refine their AI technologies, it will be interesting to see how this partnership evolves and impacts the industry as a whole.
Conclusion
In conclusion, the partnership between Apple and Google is a significant development in the tech industry, with Google’s Gemini set to power Siri’s artificial intelligence capabilities. The deal is expected to have a major impact on the industry, with implications for both companies and the future of artificial intelligence. As the companies stated, "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." With the deal expected to help Apple catch up in the AI assistant race, it will be interesting to see how this partnership evolves and impacts the industry in the years to come.
https://www.businessinsider.com/apple-google-gemini-to-power-siri-ai-capabilities-2026-1
