Apple and Google Strike Multi-Year Deal: Gemini to Power Next-Gen Siri
Apple has officially confirmed a multi-year partnership with Google, choosing Gemini to power the next generation of Siri and Apple Intelligence features. The announcement represents a major win for Alphabet and a significant setback for OpenAI.
A Landmark Partnership
The deal, announced on January 12, 2026, will see Google’s Gemini models serve as the foundation for Apple’s AI features, including a dramatically improved Siri expected later this year. In an official statement, Apple said it had conducted careful evaluation of all major AI players before selecting Google’s technology.
This decision deepens the tech giants’ alliance in the AI era, building on their existing search partnership that has seen Google pay billions annually to remain the default search engine on Apple devices.
OpenAI Left Behind
The partnership marks a significant loss for OpenAI, which had integrated ChatGPT into Apple devices in late 2024. While the ChatGPT integration remains for complex queries, OpenAI is now relegated to a supporting role rather than the primary AI foundation.
Reports indicate that OpenAI’s GPT-5 release in August 2025 underwhelmed users, with complaints about a colder tone and struggles with basic questions. OpenAI CEO Sam Altman reportedly issued a “code red” memo in December, acknowledging that ChatGPT needed urgent improvements.
Market Implications
The announcement has drawn mixed reactions. Tesla CEO Elon Musk, who founded rival AI company xAI, criticized the deal on X, saying it represents “an unreasonable concentration of power for Google” given the company’s existing dominance in Android and Chrome.
Google’s stock has surged on AI momentum, with Alphabet’s valuation climbing to $4 trillion. The company’s Gemini 3 release in November topped industry benchmarks, helping it capture market share from ChatGPT.
What’s Next
Apple has also confirmed it is developing its own AI server chips, expected to enter mass production in the second half of 2026. The company’s own data centers are planned to begin construction and operation in 2027, signaling Apple’s long-term AI ambitions beyond the Google partnership.