Technology leaders Apple and Google have forged a multi-year pact, harnessing Google’s Gemini AI and cloud expertise to drive Apple’s next-generation artificial intelligence features, topped by a sweeping Siri upgrade due later this year.
The move signals Apple’s pivot from self-reliant development to tapping a longtime partner amid cutthroat AI rivalry, building on Google’s billions in yearly payments as iPhone default search engine despite antitrust headwinds.
A joint statement acquired by CNBC’s Jim Cramer explains that Apple’s core foundational models for Apple Intelligence will leverage Gemini while operating solely on Apple hardware and private clouds.
“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 stated on Monday. Neither firm disclosed financial details.
Bloomberg’s August reports flagged initial talks for a tailored Gemini to redefine Siri, with projections of Apple paying around $1 billion annually. The deal underscores Google’s AI momentum, as Alphabet posted its best stock year since 2009 in 2025, surpassing Apple’s market cap last week for the first time since 2019 after dodging severe antitrust fallout in September.
Unlike Amazon, Meta, and Microsoft’s billions poured into AI, Apple has proceeded cautiously since ChatGPT’s 2022 rise, delaying Siri enhancements to 2026 despite hype.
“It’s going to take us longer than we thought to deliver on these features and we anticipate rolling them out in the coming year,” the firm admitted then. ChatGPT integration via OpenAI persists unchanged for Siri’s tougher tasks; OpenAI offered no comment.
Google’s upgraded Gemini 3 model launched late last year, with CEO Sundar Pichai noting in October that cloud deals topped $1 billion through Q3 2025, exceeding the prior two years combined.