Under the multi-year agreement, Apple will use Google’s cloud services and its Gemini AI models as the backbone for its future foundational AI systems.
- The collaboration follows months of speculation that Apple was exploring external AI support to modernize Siri.
- News of the partnership lifted investor sentiment around both companies, with Alphabet’s market capitalization surpassing the $4 trillion mark.
- Google and Apple also have an existing partnership, which allows the former’s search engine to remain the default on iPhones.
Apple Inc. (AAPL) has reportedly confirmed a new collaboration with Alphabet Inc.’s (GOOGL, GOOG) Google to power artificial intelligence enhancements for its products, including updates to its voice assistant Siri later in 2026.
The arrangement marks a shift in Apple’s approach to building advanced AI features by leaning on external AI infrastructure.
New AI Partnership
According to a CNBC report, under the multi-year agreement, Apple will use Google’s cloud services and its Gemini AI models as the backbone for its future foundational AI systems.
“After careful evaluation, we determined that Google’s technology provides the most capable foundation for Apple Foundation Models and we’re excited about the innovative new experiences it will unlock for our users,” Apple said.
Apple stock inched 0.01% lower on Monday morning. On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory amid ‘extremely high’ message volume levels.
The collaboration follows months of speculation that Apple was exploring external AI support to modernize Siri. Apple showed off a new version of Siri at its 2024 Worldwide Developers Conference, promising a more natural, chat-like assistant and support for ChatGPT.
Many people expected the improved Siri to arrive with the iPhone 16, but Apple later pushed the release back with no clear date. The upgrade is now expected to roll out sometime in 2026.
Market Impact And Competitive Context
News of the partnership lifted investor sentiment around both companies, with Alphabet’s market capitalization surpassing the $4 trillion mark.
Alphabet is now the fourth company to cross the $4 trillion market capitalization threshold, joining Nvidia (NVDA), Microsoft (MSFT), and Apple in the club. However, Apple and Microsoft are currently below the $4 trillion valuation mark.
The agreement also deepens a long-standing relationship between the two firms, which already includes Google paying Apple to remain the default search engine on iPhones.
Dan Ives, managing director at Wedbush Securities, said in a Sunday post on X platform that Apple is expected to choose Google as its sole partner for AI features and officially introduce its upgraded, AI-based Siri assistant at the Worldwide Developers Conference (WWDC) around March or April.
AAPL stock has gained over 10% in the last 12 months.
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