Apple and Google have signed a significant deal for Gemini

Apple has signed a multi-year deal with Google to incorporate Gemini AI models into an updated Siri, which is set to launch later this year. This agreement enhances the long-standing partnership between the two tech companies and significantly strengthens Alphabet's standing in the global AI competition against OpenAI.

The collaboration, revealed on Monday, marks a significant achievement for Google. Although its technology already supports Samsung’s "Galaxy AI," the Apple agreement opens up access to a user base of more than two billion active devices.

"After thorough assessment, Apple concluded that Google’s AI technology offers the most effective foundation for Apple Foundation Models," Google mentioned, adding that Gemini will also drive future features of "Apple Intelligence."

The financial details were not revealed. Alphabet has been in direct competition with OpenAI for this agreement. While Apple added ChatGPT to its devices in late 2024 for handling complex queries, analysts believe this new development places OpenAI in a secondary position.

"Apple’s choice moves OpenAI to a supporting role. ChatGPT is expected to be an optional feature for certain queries instead of being the primary intelligence layer," stated Parth Talsania, CEO of Equisights Research.

The agreement has faced backlash. Tesla CEO Elon Musk tweeted on X that this action signifies an "unreasonable concentration of power," pointing to Google’s current dominance over Android and Chrome.

This deal enhances the existing multi-billion-dollar collaboration that ensures Google remains the default search engine on Apple devices. After the announcement, Alphabet's market value exceeded $4 trillion, supported by a 65% rise in stock over the last year.

To ensure security, Google has confirmed that "Apple Intelligence" will continue to operate on-device and through Private Cloud Compute to uphold Apple's privacy standards.