In a move that’s sending ripples across Silicon Valley and Wall Street alike, Apple announced on January 12, 2026, that it’s teaming up with Google to use the search giant’s Gemini artificial intelligence models as the backbone for the next generation of Siri and other Apple Intelligence features. The multi-year deal, confirmed by both companies in a joint statement, signals a dramatic shift in Apple’s AI strategy and marks a significant milestone in the ongoing battle for dominance in artificial intelligence.
"After careful evaluation, Apple determined that Google's AI technology provides the most capable foundation for Apple Foundation Models and is excited about the innovative new experiences it will unlock for Apple users," the companies said in their joint statement, as reported by Business Insider and Reuters. The partnership will see Gemini’s advanced AI models and cloud computing technology integrated into Apple’s ecosystem, powering a long-awaited upgrade to Siri set to launch later this year.
The announcement comes after a period of speculation and behind-the-scenes negotiations. Bloomberg reported as early as November 2025 that Apple was considering paying around $1 billion per year to license Gemini, though neither company has officially disclosed the financial terms of the agreement. The deal was finally confirmed on January 12, 2026, and immediately sent Alphabet’s (Google’s parent company) shares up by as much as 1%, briefly pushing its market capitalization to a staggering $4 trillion during intraday trading—a first for the company and a testament to investor optimism about Google’s AI momentum.
This partnership is more than just a business arrangement; it’s a strategic leap for both tech giants. For Apple, the deal represents a chance to catch up in an AI race that’s been heating up since OpenAI’s ChatGPT burst onto the scene in late 2022. Despite having a head start with the launch of Siri in 2011, Apple has struggled to keep pace with rapid advancements in generative AI. The company’s own efforts to develop a competitive in-house AI model have faced delays and executive shakeups, with the much-touted AI-powered Siri upgrade missing its initial rollout after being teased at the 2024 Worldwide Developers Conference.
To bridge the gap, Apple previously integrated OpenAI’s ChatGPT with Siri in late 2024 as a temporary solution. But over the past year, Google’s Gemini has overtaken ChatGPT in various benchmarks and rankings, making it the model of choice for Apple’s next phase. According to Mashable, Apple’s decision to opt for Gemini over OpenAI’s model is widely seen as a pragmatic move to regain ground in the AI space.
For Google, the deal is a major distribution win. Gemini, which already powers Google search features and serves as the default AI assistant on Pixel smartphones, will now be embedded in Apple’s vast installed base of more than two billion active devices. This not only cements Gemini’s position in the AI landscape but also deepens Google’s longstanding relationship with Apple—a partnership that already includes making Google the default search engine on Apple devices, a lucrative arrangement for both parties.
Wall Street analysts greeted the news with enthusiasm. "This is what the Street has been waiting for," wrote Wedbush analysts, calling the agreement "a major validation moment for Google as a premier foundation model" that will help Apple accelerate its AI strategy. Dan Ives, a tech analyst at Wedbush, added, "This is what the Street has been waiting for with the elephant in the room for Cupertino revolving around its invisible AI strategy, but we believe this is an incremental positive to both" Apple and Google, as quoted by CNN.
The move is not without its critics and complications. Some, like Tesla CEO Elon Musk, have voiced concerns about the concentration of power, noting on social media, "This seems like an unreasonable concentration of power for Google, given that (they) also have Android and Chrome." Others point to the potential impact on Apple’s existing partnership with OpenAI, which will now take a backseat as Gemini becomes the default intelligence layer for Siri and other features. Parth Talsania, CEO of Equisights Research, commented to Reuters, "Apple's decision to use Google's Gemini models for Siri shifts OpenAI into a more supporting role, with ChatGPT remaining positioned for complex, opt-in queries rather than the default intelligence layer."
The AI arms race is clearly intensifying. In response to Gemini 3’s advancements, OpenAI CEO Sam Altman reportedly issued a "code red" to his teams, pushing for faster development. Meanwhile, Google has been doubling down on its own efforts, investing heavily in frontier models and expanding Gemini’s capabilities to include image and video generation.
For Apple, the Gemini partnership could be a lifeline after a few rocky years for the iPhone. The company is betting that the enhanced AI features—especially a smarter, more personalized Siri—will help boost device sales and restore its reputation for innovation. Analyst estimates compiled by FactSet, as cited by CNN, project iPhone sales growth of around 11% year-over-year for the December quarter, with total quarterly profits expected to rise nearly 8% to more than $39 billion.
Privacy, a perennial concern for Apple users, remains a central focus. Apple emphasized that its Apple Intelligence features will continue to run either directly on users’ devices or in a secure cloud, maintaining the company’s industry-leading privacy standards. "Apple Intelligence will continue to run on Apple devices and Private Cloud Compute, while maintaining Apple's industry-leading privacy standards," Google reiterated in its own statement to Reuters.
The partnership is also notable for its echoes of past collaborations. Thomas Hudson, a VP principal analyst at Forrester, pointed out to Business Insider that while Apple and Google compete fiercely in the smartphone market, they have a history of pragmatic alliances—most notably, Google’s role as the default search engine on Apple products. These deals, though sometimes counterintuitive, have proven mutually beneficial, driving traffic for Google and generating tens of billions in annual revenue for Apple.
Looking ahead, the Apple-Google alliance is expected to reshape the competitive landscape in AI. With Apple’s massive user base and Google’s technological edge, the partnership could set a new standard for what consumers expect from their digital assistants. Yet, it also raises questions about market concentration, competition, and the evolving roles of other AI players like OpenAI and Anthropic, both of which Apple reportedly considered as partners before settling on Gemini.
As the dust settles, one thing is clear: the race for AI supremacy is far from over, but Apple’s bold bet on Google’s Gemini has raised the stakes for everyone involved.
