News: Apple and Google announced a multi-year partnership that will use Gemini to power both Apple’s foundational AI models and the long-awaited Siri upgrade expected later this year.
The details:
- The two tech giants published a joint statement confirming the deal, with Apple stating Gemini “provides the most capable foundation” for its AI strategy.
- Bloomberg first reported the potential deal in November, noting Apple is committing roughly $1B annually to license Google’s technology.
- Apple confirmed to CNBC that its ChatGPT integration remains intact, with AI features continuing to run on-device and via Private Cloud Compute.
- The announcement briefly pushed Google’s market cap above $4T for the first time, now trailing only Nvidia, Microsoft, and Apple itself.
Why It Matters: After a year of speculation over Siri’s direction, Apple is officially outsourcing its AI struggles to a major competitor. This deal validates Google’s massive Gemini rise and creates an awkward dynamic with OpenAI, whose integration now looks like a secondary feature rather than a core partnership. The message is clear: when it comes to foundational AI infrastructure, Google has positioned itself as the default choice for even its fiercest competitors.