Dive Temporary:
- Apple and Google have entered right into a multiyear partnership that may see Google’s Gemini fashions energy Apple’s synthetic intelligence options, in response to a joint assertion.
- Gemini will gasoline Apple Intelligence, the iPhone maker’s private AI system, together with via a extra customized Siri voice assistant. Apple Intelligence will proceed to run on Apple gadgets and its Personal Cloud Compute system.
- The information confirms earlier stories suggesting the 2 firms may strike a deal round AI and expands a longtime partnership that has allowed Google’s search engine to be the default on Apple gadgets. The transfer provides to a sequence of current AI wins for Google.
Dive Perception:
Apple has turned to Google to assist its AI ambitions in a deal that strengthens the pair’s current partnership and provides the Alphabet-owned firm a possible edge in its race towards OpenAI to turn out to be the dominant pressure within the rising generative AI panorama. The announcement follows stories final fall suggesting an AI deal between the 2 was imminent, with Apple anticipated to pay Google roughly $1 billion for entry to the search large’s know-how.
“After cautious analysis, Apple decided that Google’s Al know-how supplies probably the most succesful basis for Apple Basis Fashions and is happy concerning the progressive new experiences it would unlock for Apple customers,” Apple and Google stated in a joint assertion on Jan. 12 confirming the deal.
Google’s Gemini fashions will assist energy future Apple Intelligence options, together with an overhaul to Siri that has been years within the making. Apple unveiled its Apple Intelligence generative AI providing in 2024 alongside a privacy-focused answer referred to as Personal Cloud Compute. On the time, the corporate additionally revealed a much-anticipated partnership with OpenAI to combine ChatGPT into experiences inside its iOS working system. It’s not instantly clear how Google’s take care of Apple will impression the ChatGPT integration.
Whereas Apple Intelligence has turn out to be a core focus for Apple, the corporate has taken a measured method to AI compared to different gamers within the tech house. The corporate has additionally skilled govt shakeups, naming a brand new vp of AI in former Google and Microsoft exec Amar Subramanya in December. Its newest transfer reads as the corporate taking a step away from ambitions to personal its AI experience in-house.
Google has had quite a few wins on the AI entrance of late. Other than its Apple tie-up, the corporate is making massive strikes on the commerce entrance via current offers with Goal and Walmart round AI-assisted buying. Alphabet delivered its first $100 billion quarter in Q3 2025, with its AI bets supporting advert relevancy, efficiency and automation. Alphabet briefly hit a $4 trillion market valuation on Monday following the Apple announcement.
Although they’re rivals in sure respects, together with smartphone {hardware}, Apple and Google have had a yearslong partnership that permits Google to be the default search engine on Apple gadgets. Google pays an estimated $20 billion per 12 months to Apple as a part of the deal, which was not too long ago protected in Google’s landmark antitrust lawsuit. The antitrust ruling finally discovered Google to be working as an unlawful monopoly whereas nonetheless permitting it to make revenue-sharing funds to distribution companions for choices round generative AI, search and Chrome.
On that entrance, the brand new Apple and Google deal has already drawn criticism, with X and Tesla proprietor Elon Musk calling the transfer “an unreasonable focus of energy” for the latter. Musk owns his personal generative AI enterprise, referred to as xAI, which powers the Grok assistant.
Apple posted income of $102.5 billion, a rise of 8% 12 months over 12 months, for the fiscal interval ended Sept. 27. The corporate will report outcomes for the primary quarter of its fiscal 12 months 2026 on Jan. 29.
