TLDR
- Alphabet (GOOGL) shares rose 3% on reports that Apple is in talks to use Google’s Gemini AI for a revamped Siri voice assistant
- Google stock hit an all-time high of $208.72, representing a 21.8% increase over the past year
- The potential Apple partnership comes as Google faces regulatory risks to its lucrative search deals with Apple
- Google’s Gemini AI models have consistently topped performance benchmarks while Apple has struggled with its AI strategy
- Apple is exploring partnerships with multiple AI companies including Google, Anthropic, and OpenAI for its Apple Intelligence framework
Alphabet shares jumped more than 3% Friday following reports that Apple has approached Google about incorporating Gemini technology into a redesigned version of Siri. The stock hit an all-time high of $208.72, marking another milestone for the tech giant.
According to Bloomberg, Apple recently inquired about Google building a custom artificial intelligence model to power a new Siri that could launch next year. The discussions remain in early stages but represent a potential major partnership between the two companies.
Google’s Gemini AI models have consistently ranked at the top of key artificial intelligence performance benchmarks. Apple, meanwhile, has faced criticism for falling behind in defining its AI strategy compared to competitors.
The reported talks come at a time when Google faces regulatory pressure over its search monopoly case. A U.S. judge is expected to rule this month on penalties, with the Department of Justice recommending the elimination of exclusionary agreements with third parties.
These agreements include Google’s lucrative search placement deals with Apple’s iPhone and Samsung devices. Google pays billions of dollars annually to maintain its default search position on these platforms.
Regulatory Challenges Create Uncertainty
The potential partnership discussions highlight the uncertain future facing both companies. Google’s current search deals with Apple generate substantial revenue but remain at risk pending the regulatory decision.
Documents revealed during Google’s remedy trial showed that Apple executives were already involved in negotiations about potentially using Google’s Gemini for search options. This suggests the companies have been exploring various collaboration opportunities.
Google has positioned its Gemini models as the default assistant on Android phones. The company has demonstrated capabilities that extend beyond Siri’s current functions, including video summarization and advanced conversational abilities.
Apple Explores Multiple AI Partnerships
Craig Federighi, who oversees Apple’s operating systems, stated at last year’s developer conference that Apple would like to add other AI models for specific purposes within its Apple Intelligence framework. He specifically mentioned Google as a potential partner.
Apple is also exploring partnerships with Anthropic and OpenAI as part of its efforts to strengthen its AI roadmap, according to previous Bloomberg reporting. This multi-partner approach reflects Apple’s strategy to accelerate its AI capabilities.
Google’s Gemini can now hold conversations with users and process input from photos, videos, voice, and text. These capabilities represent the type of advanced functionality Apple appears interested in incorporating.
The Android maker has showcased Gemini performing tasks that go beyond Siri’s current abilities. This technological advantage may have influenced Apple’s decision to explore the partnership.
Alphabet’s stock performance reflects investor confidence in the company’s AI leadership position. The shares have gained 21.8% over the past year, with the company maintaining a market capitalization of $2.51 trillion.
Recent developments also include Google’s agreement to provide AI and cloud services to federal agencies through its “Gemini for government” initiative. The company has unveiled its new Pixel 10 smartphone series featuring the Google Tensor G5 chip with enhanced on-device AI capabilities.
