Alphabet Inc (NASDAQ:GOOG)’s Google has confirmed it has entered a multi-year deal with Apple Inc (NASDAQ:AAPL, XETRA:APC) to power the iPhone maker’s artificial intelligence technology, including the Siri voice assistant.
Shares in both companies were higher in the final hour of trading in New York.
“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,” the companies said in a joint statement. Financial terms were not disclosed.
Bloomberg reported late last year the pair were finalising an agreement, with Apple expected to pay about $US1 billion ($1.5 billion) a year.
The companies said Apple will continue to run its AI services on users’ devices or via Private Cloud Compute, a secure cloud-based system, to maintain its privacy standards. Google’s technology will support a new version of Siri due later this year.
Apple had previously delayed the Siri update after development issues, part of wider challenges in rolling out new AI features.