Apple and Google have announced a groundbreaking multi-year partnership aimed at integrating Gemini AI models into the evolving framework of Siri, with plans for deployment in late 2026. This collaboration leverages Google Cloud technology to enhance Apple Foundation Models and Apple Intelligence features, addressing the need for robust infrastructure to support advanced reasoning tasks within Siri.
The partnership is designed to reconcile on-device processing with the substantial computational demands of large language models. Following an extensive evaluation, Apple concluded that Google’s infrastructure offers the needed scalability for its next-generation digital assistant. “After careful evaluation, we determined that Google’s technology provides the most capable foundation for Apple Foundation Models and we are excited about the innovative new experiences it will unlock for our users,” the companies stated.
This strategic move comes after a period during which Apple had been relatively inactive in the generative AI sector, while rivals like Amazon, Meta Platforms, and Microsoft invested heavily in AI infrastructure. Apple’s choice of Gemini 3, which reportedly outperforms competing systems in 2025, marks a significant shift in its approach to AI. Notably, Apple is committed to maintaining its stringent privacy standards; the AI models will be processed via Private Cloud Compute, ensuring that data is not stored on external servers.
Market dynamics shifted dramatically following the announcement. Alphabet, Google’s parent company, saw its market capitalization soar to US$4 trillion, surpassing Apple as the second most valuable company globally, a position it had not held since 2019. Alphabet’s stock surged by 65% during 2025, fueled by the successful launch of Gemini 3 and the introduction of the Nano Banana image generation tool, which enhanced investor confidence. Meanwhile, OpenAI, despite its prominence through ChatGPT, encountered a dip in market reception following the disappointing launch of GPT-5, paving the way for Google’s cloud unit to emerge as a significant growth driver.
In an October 2025 report, Google CEO Sundar Pichai announced that the company’s cloud segment signed contracts worth over US$1 billion in the third quarter of 2025 alone, surpassing the total for the previous two years combined. Apple is now under pressure to deliver a functional upgrade for Siri, especially after it postponed a product launch originally expected in 2025. Despite its ongoing collaboration with OpenAI, the integration of Gemini signifies a more fundamental architectural overhaul for Apple’s operating systems.
Reports suggest that the agreement between Apple and Google is valued at approximately US$1 billion annually, supplementing the billions Google already pays to Apple for its default search engine status on the iPhone. While the partnership has faced scrutiny due to antitrust issues, recent judicial rulings have indicated a more favorable environment for collaboration. A September 2025 ruling against the forced divestiture of Google’s Chrome business has allowed the company to maintain its integrated ecosystem and pursue ambitious deals.
Despite these advancements, Google continues to navigate legal challenges concerning its advertising business, with a trial underway regarding alleged monopolistic practices in the online advertising market. The outcome could potentially require the company to divest certain divisions.
Additionally, Google has expanded its capabilities by leasing self-developed AI chips to external customers, a move that has driven a 34% revenue increase for Google Cloud. By the end of the third quarter of 2025, the backlog of unrecognized sales contracts for the cloud division surged to US$155 billion. This robust infrastructure will be essential for managing the heavy workloads expected from millions of iPhone users accessing Gemini-powered features.
The technical integration of Gemini into Siri is anticipated to follow a phased rollout. Initial testing of Apple Foundation Models is scheduled for the first half of 2026, with an upgraded Siri interface expected to utilize Gemini 3 for multi-step query processing. Full deployment to the global user base is projected for late 2026. Both companies have emphasized that Apple Intelligence will prioritize on-device execution for simpler tasks, reserving cloud-based Gemini models for complex requests requiring extensive knowledge or advanced reasoning.
This collaboration not only positions Apple to better compete in the rapidly evolving AI landscape but also highlights the increasingly complex interplay between technology giants in shaping the future of digital assistance and cloud computing.
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