new york
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Apple plans to use Google's Gemini artificial intelligence model to power the latest version of Siri, scheduled to launch later this year, the companies announced Monday.
“After careful evaluation, Apple determined that Google's Al technology provides the most capable foundation for Apple Foundation Models, and we are excited about the innovative new experiences it will bring to Apple users,” Apple and Google said in a statement. The companies said they have signed a multi-year agreement in which Apple will use Google's Gemini model and cloud computing technology to enhance its AI capabilities.
The move could help Apple accelerate the release of a more advanced AI-powered version of its Siri voice assistant, which has been delayed since it was first teased at the 2024 World Development Conference. The delay has led to concerns that Apple is lagging behind other tech giants in AI development.
While the agreement could signal that Apple continues to struggle to develop its own AI models competitively, Wall Street sees the news as a positive sign for the iPhone maker. Apple is betting on adding AI features, including an updated Siri, to boost sales of the device after several difficult years for the iPhone.
It's also a big win for Google in Silicon Valley's ongoing battle to create the most capable and widely used AI models. Apple is also partnering with OpenAI to use ChatGPT to power some AI capabilities, but the deal announced Monday will put Gemini at the center of Apple's future AI strategy. It's not immediately clear whether or how Apple's deal with Google will affect ChatGPT's integration into some AI features on the iPhone.
Wedbush technology analyst Dan Ives said in an emailed commentary that Apple and Google are “an elephant in the room for Cupertino that revolves around an invisible AI strategy, something the Street has been waiting for, but we believe this will be incrementally positive for both parties.”
Financial terms of the deal were not disclosed. The agreement was first reported by CNBC.
Bloomberg reported in the fall that Apple plans to pay about $1 billion a year to include Gemini in the latest version of Siri, citing unnamed people familiar with the matter. The report also noted that Apple had previously considered partnering with other AI companies on this project, including OpenAI and Anthropic.
Apple announced Monday that under the new agreement, Apple Intelligence AI capabilities will continue to run on users' devices or in the secure cloud to protect users' personal data.
Shares of Apple (AAPL) and Google (GOOGL) were up less than 1% at midday Monday.
When Apple releases its financial results for the fiscal year ending in December at the end of this month, it is expected to record an 11% year-over-year increase in iPhone sales, according to analyst forecasts compiled by FactSet. The company's total quarterly profits are expected to rise nearly 8% to more than $39 billion.
