Key Takeaways
- Apple is partnering with Google to power its upcoming artificial intelligence features, including a long-delayed AI overhaul of its Siri voice assistant.
- The partnership will be based on Google’s Gemini models and cloud technology, which will help power future Apple Intelligence features.
- The deal has major implications for Apple, which has been under immense pressure to implement AI features for its iPhone and other devices.
- The partnership may draw the ire of antitrust hawks, who have long criticized the collaboration between Apple and Google on online search.
Introduction to the Partnership
The tech giants, Apple and Google, have announced a "multi-year collaboration" to power Apple’s upcoming artificial intelligence features, including a long-delayed AI overhaul of its Siri voice assistant. As stated in the joint statement, "These models will help power future Apple Intelligence features, including a more personalized Siri coming this year." This partnership is a significant development for Apple, which has been struggling to implement AI features for its iPhone and other devices. The company has chosen Google to power its Siri voice assistant, with Google’s Gemini models and cloud technology serving as the foundation for Apple’s AI infrastructure.
The Deal’s Implications
The deal has major implications for Apple, which has been under immense pressure to implement AI features for its iPhone and other devices. As Wedbush analyst Dan Ives noted, "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." The partnership is seen as a "much needed" development for Apple, which has been struggling to keep up with its competitors in the AI space. As Ives noted, the deal is a "major validation moment" for Google and a "stepping stone" for Apple to accelerate its AI strategy.
The Partnership’s Details
The partnership will be based on Google’s Gemini models and cloud technology, which will help power future Apple Intelligence features. As the joint statement noted, "Apple Intelligence will continue to run on Apple devices and Private Cloud Compute, while maintaining Apple’s industry-leading privacy standards." The deal did not put a dollar figure on the partnership, but Bloomberg reported last year that Apple was planning to pay about $1 billion per year for access to Gemini. The partnership is a significant development for both companies, with Google parent Alphabet’s shares rising about 1% immediately after the announcement.
Antitrust Concerns
The Apple-Google AI deal may draw the ire of antitrust hawks, who have long criticized the collaboration between the two companies on online search. As US District Judge Amit Mehta ruled last year, Google has a monopoly over online search, but can 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 partnership may raise concerns about the level of competition in the AI space, with some critics arguing that the deal could further entrench Google’s dominance in the market.
Leadership Changes
Apple recently shook up the 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. The leadership changes are seen as a significant development for Apple, which is looking to accelerate its AI strategy in the coming years. As Subramanya takes over the reins, he will be tasked with overseeing the implementation of the partnership with Google and ensuring that Apple’s AI features are competitive with those of its rivals.
Conclusion
The partnership between Apple and Google is a significant development for both companies, with major implications for the AI space. As Apple looks to accelerate its AI strategy, the partnership with Google is seen as a "much needed" development. However, the deal may also raise concerns about the level of competition in the AI space, with some critics arguing that it could further entrench Google’s dominance in the market. As the partnership moves forward, it will be interesting to see how it plays out and what impact it will have on the AI space.
https://nypost.com/2026/01/12/tech/apple-picks-google-to-power-ai-for-long-delayed-siri-overhaul/