Under the new agreement between Apple and Alphabet, Google’s Gemini AI model will power Siri. The companies said the models will form the basis for future Apple Intelligence features, including a more personalized Siri that will be released later this year.
The joint statement said that after conducting an evaluation, Apple found Google’s AI technology to be the strongest foundation for Apple Foundation Models and believes that this partnership will create new innovative experiences for users. The news was first reported by CNBC.
Following the news, Alphabet’s shares rose as much as 1%, briefly pushing its market value to $4 trillion in trading. Alphabet overtook Apple last week to become the world’s second most valuable company, behind Nvidia.
Rumors of the deal have been circulating since last year. According to a November report by Bloomberg, Apple was considering paying $1 billion annually to use the Gemini model. Analysts see the deal as a significant confidence boost for Google and an opportunity for Apple to accelerate its AI strategy.
Apple introduced Siri in 2011, but it has been lagging behind its rivals since ChatGPT was launched in late 2022. For Google, the integration with Siri gives it an additional advantage on the most popular mobile platform in the US.
