Google shares surged over 3% Friday on reports that Apple is in early talks to integrate Gemini AI models into a revamped Siri assistant launching next year. The potential partnership signals Apple's struggle to match competitors in AI while offering Google a lifeline amid antitrust threats to its search dominance.
Apple just sent Google a lifeline wrapped in an AI partnership inquiry. The iPhone maker has quietly approached the search giant about building custom Gemini models to power a completely reimagined Siri, according to a Bloomberg report that sent Alphabet shares jumping over 3% in Friday trading.
The timing couldn't be more critical for both companies. Google faces an imminent federal ruling that could shatter its lucrative search agreements with Apple – deals worth billions annually that keep Google as the default search engine on iPhones. Meanwhile, Apple watches competitors like Meta and Microsoft sprint ahead in AI capabilities while Siri remains notoriously limited compared to modern conversational AI.
"Apple recently inquired of Google about the potential for the search giant to build a custom artificial intelligence model that would power a new Siri that could launch next year," the Bloomberg report reveals, citing people familiar with the discussions. Google's Gemini models consistently top AI benchmarks while Apple's internal efforts lag behind industry leaders.
The partnership conversations emerge as Google braces for a Department of Justice ruling on penalties for its alleged search monopoly. Federal prosecutors want to eliminate Google's exclusionary agreements with third parties – precisely the deals that make Google the default search option on and devices. Those arrangements cost Google in revenue sharing.
