Apple collaborates with Google Gemini to enhance Siri with AI capabilities

Apple and Google Join Forces to Enhance Siri with Gemini AI

Apple has revealed plans to integrate Google’s Gemini artificial intelligence technology into a revamped version of Siri, scheduled for release later this year. This collaboration was officially announced by both companies on Monday.

In a joint statement, Apple and Google shared that, after thorough assessment, Apple found Google’s AI solutions to be the best fit for advancing its own AI models. The agreement, which spans several years, will see Apple leveraging Google’s Gemini platform and cloud infrastructure to deliver new AI-powered features.

This partnership is expected to speed up the launch of Apple’s next-generation Siri, which had previously faced delays following its initial preview at the 2024 Worldwide Developers Conference. These setbacks have fueled speculation that Apple is lagging behind other leading tech firms in the AI space.

While the deal suggests Apple may still be working to develop a competitive in-house AI system, investors have responded positively. Apple is counting on enhanced AI capabilities, including the improved Siri, to help drive iPhone sales after a period of slower growth.

For Google, the agreement marks a significant achievement in the ongoing competition among Silicon Valley giants to develop the most powerful and widely adopted AI technologies. Although Apple has also teamed up with OpenAI to use ChatGPT for certain features, the latest announcement places Gemini at the core of Apple’s AI plans. It remains uncertain how this new arrangement will impact Apple’s existing collaboration with OpenAI on the iPhone.

Wedbush technology analyst Dan Ives commented that this development addresses long-standing questions about Apple’s AI strategy and represents a positive step for both companies.

Financial details of the partnership have not been made public. CNBC was the first to report on the agreement.

According to a Bloomberg report from last fall, Apple is expected to pay approximately $1 billion annually to incorporate Gemini into the new Siri, based on information from unnamed sources. The report also mentioned that Apple had previously explored partnerships with other AI companies, such as OpenAI and Anthropic.

Apple has stated that, under the new deal, its Apple Intelligence features will continue to operate either directly on users’ devices or through a secure cloud system, ensuring the protection of personal data.

Market Reaction and Financial Outlook

On Monday, shares of both Apple (AAPL) and Google (GOOGL) saw modest gains of less than 1% by midday.

Analysts surveyed by FactSet anticipate that Apple will report an 11% year-over-year increase in iPhone sales for the December quarter, with total quarterly profits projected to rise nearly 8% to over $39 billion.