apple We are working together with google Enhanced artificial intelligence capabilities, including a major Siri upgrade coming later this year.
The multi-year partnership will rely on Google’s Gemini and cloud technologies for future Apple base models, according to a joint statement obtained by CNBC’s Jim Cramer.
“After careful evaluation, we determined that Google’s technology provides the most capable foundation for Apple Foundation Models, and we are excited about the innovative new experiences it will bring to our users,” Apple said in a statement Monday.
These models will continue to run on Apple devices and the company’s private cloud computing, they added.
Apple declined to comment on the terms of the deal. Google referred the joint statement to CNBC.
In August, Bloomberg reported that Apple was in early talks with Google to use a custom Gemini model to power its new Siri. Later, the news outlet reported that Apple plans to pay around $1 billion a year to use Google AI.
The deal is another major indicator of growing confidence in Google’s accelerating AI plans and pushback against OpenAI. In 2025, the search giant had its best year since 2009, and last week surpassed Apple in market capitalization for the first time since 2019.
Google already pays Apple billions of dollars each year to be the iPhone’s default search engine. However, this lucrative partnership was briefly called into question after it was revealed that Google held an illegal Internet search monopoly.
In September, a judge ruled against a worst-case scenario that could force Google to sell its Chrome browser business.
The decision also allows Google to continue making deals like the one with Apple.
The stock price rose on this news, but has since fallen. Google briefly had a market capitalization of over $4 trillion.
Since the announcement of OpenAI’s ChatGPT in late 2022, Apple has largely sat on the sidelines of the AI frenzy that has taken Wall Street by storm.
hyperscaler Amazon, meta platform and microsoft We have invested billions of dollars in AI products, tools, and infrastructure for our customers.
That has put even more pressure on iPhone makers to deliver impressive upgrades to the Siri AI voice, which the company has delayed until 2026 despite advertising the product last year.
“Delivering these features will take longer than we expected, but we expect to have them rolled out within the next year,” the company said in a statement at the time.
Apple is currently partnering with OpenAI to integrate ChatGPT into Siri and Apple Intelligence, specifically enabling complex queries that can leverage the world knowledge of AI models. It’s unclear what the partnership with Google means for future ChatGPT integration.
The iPhone maker told CNBC it has not made any changes to the contract. OpenAI did not immediately respond to a request for comment.
Meanwhile, Google has been making steady progress with its AI plans, announcing an upgraded Gemini 3 model late last year.
Google CEO Sundar Pichai said in October that the company’s cloud division had signed more than $1 billion in deals through the third quarter of 2025, more than in the previous two years combined.
Alphabet and Apple daily stock price charts.
