Apple and Google have entered into a long-term agreement to implement AI features in Apple services, including the revamped Siri.

"After careful evaluation, we concluded that Google's technology provides the most effective foundation for Apple's Foundation Models. We are excited about the innovative possibilities it will unlock for our users," the tech giants stated in a joint announcement.

Reports about Apple seeking Google's assistance in AI emerged in November, as the company considered options from OpenAI and Anthropic.

While the financial details of the deal remain undisclosed, previous reports suggest that Apple plans to pay Google around $1 billion annually for access to AI technologies.

As part of the partnership, the Cupertino firm will utilize Google's Gemini models and cloud technologies for future foundational neural networks.

The iPhone maker has faced criticism following its struggles in the AI space, particularly as Siri has significantly lagged behind competitors.

In the summer of 2024, Apple announced Apple Intelligence, a major initiative to develop generative AI, which aims to integrate AI into existing OS features like photo searches and notification summaries.

The company emphasizes privacy, with most data processing occurring locally on devices. Apple stated it will uphold these standards throughout its partnership with Google.

Tim Cook's company has repeatedly delayed the launch of the updated Siri. According to the latest reports, the release is expected in spring 2026.

AI Doesn't Hinder Sales

Despite mediocre AI features in the iPhone and the absence of a "smart" AI Siri, Apple remains the leading smartphone manufacturer.

According to Counterpoint Research, global smartphone shipments increased by 2% in 2025 compared to the previous year, with Apple leading the market with a 20% share—the highest among the top five brands. This success was driven by sales of the iPhone 17 series.

Samsung ranks second with a 19% share, while Xiaomi holds third place with 13%.

The sector is expected to cool in 2026 due to chip shortages and rising component costs.

Google's Market Capitalization

Google is showing strong growth in its AI sector, managing to compete with OpenAI. Sam Altman's company had to declare a "red code" and accelerate the release of new solutions.

The new Gemini 3 model has received high praise, increasing pressure on OpenAI.

Success in the LLM space has propelled Google's parent company, Alphabet, back into the spotlight, with its market capitalization reaching $4 trillion.

Financial performance of Alphabet's stock. Source: Yahoo Finance.

"Among the 'Magnificent Seven,' this company has surprised us all over the past 12 months by breaking out of its traditional model. I would highlight the corporation's innovativeness—this is what has allowed it to stand out among many others," noted Phil Blancato, CEO of Ladenburg Thalmann Asset Management.

Google Cloud's revenue grew by 34% in the third quarter, and its backlog of unfulfilled sales contracts increased to $155 billion.

Alphabet became the fourth company to reach a $4 trillion valuation, following Nvidia, Microsoft, and Apple.

In November, Google Cloud Vice President Amin Wahdat stated that Google must double its computing power every six months to meet the growing demand for AI technologies.