Apple is partnering with Google to power its next generation of artificial intelligence features, including a long-awaited Siri upgrade slated for later this year.
Under a multiyear agreement, Apple will rely on Google’s Gemini models and cloud infrastructure to support future Apple Foundation Models, according to a joint statement shared with CNBC’s Jim Cramer. Apple said the AI models will continue to run on its devices as well as its private cloud compute platform.
“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,” Apple said Monday.
Apple declined to disclose financial terms of the deal, while Google referred questions to the joint statement.
The partnership follows earlier reports from Bloomberg that Apple had been in talks with Google to use a customized version of Gemini to power a new iteration of Siri. Bloomberg later reported Apple was planning to pay roughly $1 billion annually for access to Google’s AI technology.
The agreement signals growing confidence in Google’s accelerating AI strategy as it seeks to close the gap with OpenAI. In 2025, Google posted its strongest performance since 2009 and surpassed Apple in market capitalization last week for the first time since 2019.
Google already pays Apple billions of dollars each year to remain the default search engine on iPhones, though that arrangement briefly faced uncertainty after a court ruled the company held an illegal online search monopoly. In September, however, a judge rejected a worst-case outcome that could have forced Google to divest its Chrome browser, allowing the company to continue partnerships such as the one with Apple.
Google shares initially rose on the news before retreating, after briefly pushing the company’s valuation above $4 trillion.
Apple has largely remained on the sidelines of the AI boom that began with OpenAI’s ChatGPT launch in late 2022, while rivals including Amazon, Microsoft, and Meta have invested heavily in AI products and infrastructure. That has increased pressure on Apple to deliver a significant AI upgrade to Siri, which the company delayed last year until 2026 despite promoting the feature in advertising.
“It’s going to take us longer than we thought to deliver on these features,” Apple said at the time.
Apple currently works with OpenAI to integrate ChatGPT into Siri and Apple Intelligence for complex queries requiring broad world knowledge. The company told CNBC that the new Google partnership does not change its existing agreement with OpenAI, though OpenAI declined to comment.
Meanwhile, Google has continued to advance its AI efforts, launching its upgraded Gemini 3 model late last year. In October, CEO Sundar Pichai said Google Cloud had signed more than $1 billion worth of deals through the third quarter of 2025—more than the previous two years combined.
Source: cnbc.com Edited by Bernie
