This article first appeared on GuruFocus.
Aug 25 – Alphabet (NASDAQ:GOOGL) shares rose about 2% on Monday morning extending the Friday 3% rally after reports said Apple (NASDAQ:AAPL) has opened talks to use Google’s Gemini models to power a revamped Siri. Bloomberg reported Apple asked Google about building a custom Gemini model that could replace parts of Siri as soon as next year. Market reaction reflects the potential commercial tie-up between two long-time rivals.
Gemini sits near the top of benchmark lists for language and multimodal tasks, while Apple has moved cautiously on a broader AI strategy. Apple already explores partnerships with Anthropic and OpenAI as it develops its Apple Intelligence framework; integrating a third-party model would mark a notable shift. Google says it plans to make Gemini the default assistant on Android and has shown Gemini handling tasks beyond what Siri can do, such as video summarization.
The talks come as regulators examine Google’s search deals with device makers; a U.S. court may rule soon on remedies that could affect search placement agreements. Documents from Google’s remedy trial show Apple executives participated in past negotiations around search options. For now both companies decline comment. Investors will watch whether a commercial partnership on AI also reshapes competitive and regulatory dynamics in search and mobile assistants.