A strategic AI pivot
Apple has entered a multi-year partnership with Google to use its Gemini artificial intelligence models to power next-generation Siri features, marking one of the most significant shifts in Apple’s AI strategy in years.
Under the agreement, future Apple Foundation Models will be built on Gemini models and Google’s cloud infrastructure, forming the backbone of upcoming Apple Intelligence capabilities — including a more personalized Siri expected later this year.
Apple said it selected Google’s technology after extensive evaluation, citing its performance and scalability as key advantages.
Privacy-first architecture remains intact
Despite the partnership, Apple emphasized that its privacy standards will not change.
Apple Intelligence will continue to operate:
- On-device where possible
- Through Private Cloud Compute for more complex tasks
This hybrid approach allows Apple to leverage Google’s AI strength without fully outsourcing user data or abandoning its privacy-first positioning.
A deal months in the making
The partnership had been rumored since November, when it was first reported by Bloomberg. Monday’s announcement formally confirmed the collaboration, putting an end to speculation around whether Apple would rely on internal models, third-party providers, or a mix of both.
For Apple, the move reflects urgency to close the perceived AI gap as competitors accelerate product rollouts tied to large language models.
Alphabet’s AI bet pays off
The announcement comes as Alphabet, Google’s parent company, reached a $4 trillion market valuation, underscoring renewed investor confidence in its AI strategy.
Alphabet’s stock rose roughly 65% in 2025, outperforming other members of the so-called “Magnificent Seven,” and has added another 5% so far this year.
On Wednesday, Alphabet briefly surpassed Apple in market capitalization for the first time since 2019, becoming the world’s second most valuable publicly traded company.
Why this matters for investors
This partnership highlights a broader shift in Big Tech:
- Apple is prioritizing best-in-class AI performance over exclusivity
- Google is cementing its role as a core AI infrastructure provider, even to rivals
- The AI arms race is increasingly about platform leverage, not just consumer-facing apps
Alphabet’s ability to monetize AI through cloud, infrastructure, and now embedded partnerships strengthens its competitive moat — while Apple gains speed without compromising its ecosystem control.
WSA Take
Apple’s decision to lean on Gemini is a clear acknowledgment that AI leadership now requires scale, speed, and infrastructure depth. For Alphabet, this is validation — not just of its models, but of its position as the backbone of the AI economy. The power shift inside Big Tech is becoming harder to ignore.
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Disclaimer
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