Alphabet Inc (NASDAQ:GOOG)'s Google confirmed on Monday that it has entered a multi-year agreement with Apple Inc (NASDAQ:AAPL, XETRA:APC) to power the iPhone-maker’s artificial intelligence technology, including its Siri voice assistant.
“After careful evaluation, Apple determined that Google’s AI technology provides the most capable foundation for Apple Foundation Models and is excited about the innovative new experiences it will unlock for Apple users,” Google said in a post on X, the social media platform formerly known as Twitter.
The terms of the agreement were not disclosed. According to Bloomberg and Reuters, the arrangement could involve roughly $1 billion per year in access fees to Google’s technology.
Apple is expected to use Google’s Gemini AI model to enhance Siri’s capabilities in the near term while it develops its own AI systems. Gemini is anticipated to enable Siri to handle more complex, multi-step tasks and improve cross-app integration, with Apple planning to eventually transition to a proprietary, trillion-parameter AI model.
Wedbush analysts called the move a significant milestone for both companies, describing it as “an incremental positive to both AAPL and GOOGL as a major validation moment for Google as a premier foundation model and for Apple as a stepping stone to accelerate its AI strategy into 2026 and beyond.”
The firm noted that while the timeline to integrate Gemini into Siri is “longer than we had expected, this was a necessary move for Apple to deliver its own personal assistant within its hardware ecosystem.”
Wedbush also highlighted potential financial benefits, saying the partnership could support “a new subscription-based revenue stream to the largest consumer installed base in the world.”
The analysts maintained an ‘Outperform’ rating on Apple with a 12-month price target of $350, noting the company remains on the Wedbush Best Ideas List and the IVES AI 30 List.
Shares of Apple traded up 0.6% at $260 in the early afternoon on Monday, while Alphabet shares were up 0.4% at $330, giving the company a valuation just shy of $4 trillion.