Important points
- Apple will use Google’s Gemini AI and cloud to power an improved version of Siri that will be released later this year.
- The partnership expands Apple’s AI capabilities and comes as Google’s market capitalization exceeds Apple’s for the first time since 2019.
According to a report from CNBC, Apple has chosen Google’s Gemini AI model to drive a major upgrade to Siri. The deal marks a significant change for Apple, which will use Google’s multimodal AI to power Siri’s conversational abilities starting later this year.
This partnership is part of a broader multi-year agreement that includes the Gemini model and Google Cloud infrastructure. CNBC’s Jim Cramer obtained a statement from Apple confirming the partnership.
Apple said it chose Google’s technology because it provides the strongest foundation for its AI models, adding that the partnership will help bring new and innovative experiences to users.
The move comes amid increased competition in the AI field and a reorganization of technology evaluation. Google’s parent company Alphabet briefly surpassed Apple’s market capitalization for the first time since 2019, with an intraday value of more than $4 trillion. At the time of writing, Alphabet’s market capitalization was $3.9 trillion, while Apple’s was hovering around $3.83 trillion.
On the day, Google stock rose 0.3% and Apple stock rose 0.6%.
The deal positions both companies to capitalize on the growing demand for intelligent assistants and multimodal models, with the Siri overhaul likely to be one of the most visible AI introductions in consumer devices this year.