Apple is joining forces with Google to power its artificial intelligence features, including a major Siri upgrade expected later this year. The multi-year partnership will lean on Google’s Gemini and cloud technology for future Apple foundational models, according to a statement obtained by CNBC’s Jim Cramer.<\/p>\n<\/p>\n
“After careful evaluation, we determined that Google’s technology provides the most capable foundation for Apple Foundation Models and we’re excited about the innovative new experiences it will unlock for our users,” the tech giants said in a joint statement on Monday.<\/p>\n
The models will continue to run on Apple devices and the company’s private cloud compute, they added. Apple declined to comment on the terms of the deal. Google referred CNBC to the joint statement.<\/p>\n
In August, Bloomberg had reported that Apple was in early talks with Google to use a custom Gemini model to power a new iteration of Siri. The news outlet later reported that Apple was planning to pay about $1 billion a year to utilize Google AI.<\/p>\n
The deal is another major indicator of growing trust in Google’s accelerating AI agenda and comeback against OpenAI. In 2025, the search giant logged its best year since 2009 and surpassed Apple in market capitalization last week for the first time since 2019.<\/p>\n
Google already pays Apple billions each year to be a default search engine on iPhones. But that lucrative partnership briefly came into question after Google was found to hold an illegal internet search monopoly. In September, a judge ruled against a worst-case scenario outcome that could have forced Google to divest its Chrome browser business.<\/p>\n
Shares were slightly lower following the news. Google briefly touched above a $4 trillion market value.<\/p>\n