Originally published: 12 JAN 26 12:11 ET
Updated: 12 JAN 26 3:16 PM ET
NEW YORK (CNN) — Apple plans to use Google’s Gemini artificial intelligence model to power its updated version of Siri, which is expected to launch later this year, the two companies announced Monday.
“After careful evaluation, Apple has determined that Google’s Al technology provides the highest-performing foundation for Apple Foundation models and is excited about the innovative new experiences it will unlock for Apple users,” Apple and Google said in a statement. The two companies said they have entered into a multi-year deal under which Apple will use Google’s Gemini model and cloud computing technology to power AI capabilities.
The move could help Apple accelerate the release of its more advanced, AI-based version of its Siri voice assistant, which has been delayed After being teased for the first time at the 2024 Global Business Development Conference. This delay helped fuel concerns that Apple behind other tech giants in AI development.
The deal could indicate that Apple continues to struggle to develop a competitive in-house AI model, but the news is seen by Wall Street as a positive sign for the iPhone maker. Apple is betting on additional AI capabilities, including updated Siri, to boost device sales after several difficult years for the iPhone.
It’s also a major victory for Google in Silicon Valley’s ongoing battle to create the most successful and widely used AI model. Apple has also partner with OpenAI to use ChatGPT to power certain AI features, but the deal announced Monday puts Gemini at the center of Apple’s future AI strategy. It was not immediately clear if and how the deal between Apple and Google would affect ChatGPT’s integration into some of its AI features on iPhone.
“This is what Street has been waiting for with the elephant in the room for Cupertino revolving around its invisible AI strategy, but we think this is an added benefit for Apple and Google,” Wedbush technology analyst Dan Ives said in an emailed comment.
Financial terms of the deal were not disclosed. The deal was first reported by CNBC.
Bloomberg reported in the fall, Apple planned to pay about $1 billion a year to integrate Gemini into the updated version of Siri, citing unnamed people familiar with the matter. The report also said that Apple had previously considered partnering with other AI companies on the project, including OpenAI and Anthropic.
Apple said Monday that under the new deal, its Apple Intelligence AI features will continue to work either on users’ devices or in a secure cloud, to protect users’ personal data.
Apple shares (AAPL) and Google (GOOGLE) were up less than 1% midday Monday. Rising stocks pushed Google’s market capitalization up to $4 trillion for the first time Monday in intraday trading, making it the fourth publicly traded company to take this step after Nvidia, Microsoft and Apple last year.
Apple is expected to post year-over-year iPhone sales growth of about 11% when it reports December quarter results later this month, according to analyst estimates compiled by FactSet. The company’s total quarterly profits are expected to grow nearly 8% to more than $39 billion.
The-CNN-Wire
™ & © 2026 Cable News Network, Inc., a Warner Bros. company. Discovery. All rights reserved.
