Apple has partnered with Google to power Siri using Gemini AI in a landmark multi-year deal, pushing Alphabet past a $4 trillion market cap while maintaining Apple’s privacy standards with no user data shared with Google.
In a shocking announcement that sent waves of the technology world in disarray, Apple and Google have confirmed a multi-year partnership, which will see Google’s Gemini A.I. models power the next generation of Apple’s intelligent assistant, Siri. This strategic collaboration is one of the most significant developments in the AI industry and sees two of Silicon Valley’s most iconic companies combine forces in a deal that could change the way billions of users interact with their devices.
The news, which was announced on Monday, January 12, 2026, immediately affected financial markets, sending Alphabet’s market capitalisation over the $4 trillion threshold for the first time in intraday trading. For businesses and digital marketers in the UAE and beyond, this collaboration represents an essential change in the world of AI-powered search and voice assistants.
Breaking Down the Apple-Google Gemini Deal
According to the joint statement released by both tech-giants, Apple and Google has entered into a multi-year collaboration under which the next generation of Apple Foundation Models will be based on Google’s Gemini models and cloud technology. The official statement emphasised: “After careful evaluation, Apple determined that Google’s AI technology provides the most capable foundation for Apple Foundation Models and is excited about the innovative new experiences it will unlock for Apple users.“
While neither company has confirmed exactly what the financial terms are, according to Bloomberg, Apple was planning to pay around $1 billion a year to integrate Gemini into its updated Siri. This number, large as it is, is dwarfed by the estimated $20 billion that Google currently pays Apple each year to stay the default search engine on iPhones.
Key Elements of the Partnership
The deal involves a number of key components. First, Gemini AI Integration: Google’s advanced Gemini models, including the recently launched Gemini 3, will be the basis for Apple’s AI features. Second, Cloud Infrastructure: Apple will use the cloud computing technology of Google. Third, Privacy Preservation: Despite the deep integration, Apple Intelligence will continue to run on Apple devices and Private Cloud Compute keeping Apple’s industry-leading privacy standards.
Why This Partnership Matters for the AI Industry
The timing of this announcement is particularly significant. Apple had initially teased an AI-powered Siri overhaul at its 2024 Worldwide Developer Conference, only to delay the feature into 2026. This delay intensified criticism that Apple had fallen behind competitors like Google, Microsoft, and OpenAI in the AI race.
Wedbush tech analyst Dan Ives captured the market sentiment: “This is what the Street has been waiting for with the elephant in the room for Cupertino revolving around its invisible AI strategy, but we believe this is an incremental positive to both Apple and Google.”
The global AI market is valued at approximately $390 billion in 2025 and is projected to reach $3.49 trillion by 2033, growing at a CAGR of 30.6%. This partnership positions both Apple and Google to capture significant market share in this rapidly expanding sector.
The Voice Assistant Market Transformation
The voice assistant market has become more competitive. According to DemandSage research, approximately 153.5 million Americans are expected to use voice assistants in 2025. Current market dynamics indicate that Siri is the leader in the smartphone sector with about 86.5 million users in the United States, and Google Assistant has about 92.4 million users on all devices.
However, Siri’s ability has been a point of criticism. Research from Statista shows that although Google Assistant understands queries with 100% accuracy and gives correct answers almost 93% of the time, Siri, while understanding queries 99.8% of the time, accurately answers only 83.1% of the time. This capability gap has been a major reason for Apple to enter into a partnership with Google.
With Gemini running the next-generation Siri, Apple’s assistant should become a proper AI answer engine, fundamentally altering how millions of iOS users find information, ask questions and engage with search functionality.
Market Impact: Google’s $4 Trillion Milestone
The partnership announcement propelled Alphabet shares to record highs. According to The Wall Street Journal, the stock reached $334.04 in intraday trading on Monday, pushing its market capitalisation to $4.03 trillion for the first time. This milestone makes Google’s parent company only the fourth firm ever to achieve this valuation, joining Apple, Microsoft, and Nvidia in the exclusive club.
Notably, Alphabet recently overtook Apple to become the second-largest publicly traded company globally, behind only Nvidia. The market’s enthusiasm reflects growing confidence in Google’s AI strategy, particularly following the successful launch of Gemini 3 in November 2025 and the growth of Gemini’s monthly active users from 450 million to 650 million.
Privacy Considerations: What Users Should Know
One of the most important components of this partnership is Apple’s dedication to upholding its standards of privacy. Google has publicly confirmed via Twitter that it will not receive Apple user data as part of the arrangement. The joint statement explicitly states that Apple Intelligence will continue to operate through Apple’s Private Cloud Compute infrastructure.
This approach is similar to Apple’s current integration with OpenAI’s ChatGPT, where queries handled by the AI service are not connected to people’s wider data profiles. According to AppleInsider analysis, by having Gemini as a base for Apple Foundation Models instead of routing queries directly through Google’s systems, Apple keeps its ability to provide AI capabilities while keeping user privacy intact
Industry observers point out that all that end users will interact with will be Apple technology, hosted on Apple-controlled server hardware or processed on-device. Google’s role is basically as a technology provider of the underlying AI models, not as a data processor of user queries.
Implications for Digital Marketing and SEO
For businesses and digital marketers, especially in competitive markets such as Dubai and the UAE, this partnership has far-reaching implications when it comes to search engine optimisation and content strategy.
Voice Search Optimisation Becomes Critical
With an enhanced Siri powered by Gemini’s advanced natural language understanding, voice search is set to become even more sophisticated. According to voice search research, voice search results tend to load 52% faster than average search results, and the average voice search response is approximately 29 words. Businesses need to optimise their content for conversational queries and featured snippets that these AI assistants favour.
Local Search Implications
According to DemandSage statistics, approximately 76% of voice searches involve local or “near me” queries. For businesses serving the UAE market, this means ensuring local SEO fundamentals are solid, including Google Business Profile optimisation, consistent NAP (Name, Address, Phone) information, and location-specific content that addresses the questions voice assistant users are likely to ask.
What Happens to Apple’s ChatGPT Integration?
Apple currently has a partnership with OpenAI to integrate ChatGPT into Siri and Apple Intelligence to deal with complex queries. According to CNBC reporting, the company has confirmed that it is not making any changes to this agreement following the Google announcement. However, the new partnership puts Gemini at the heart of Apple’s future strategy in AI, according to industry analysts.
The deal is reportedly not exclusive, though, so there is room for Apple to keep multiple AI partnerships. This multi-vendor approach gives Apple the optionality to use different AI technologies for different use cases while keeping the optionality open as the AI landscape continues to evolve at a blistering pace.
Timeline and What to Expect
Apple has said that the increasingly personalised, AI-powered Siri will be available later in 2026. While specific features have not been detailed, 9to5Mac does report that the scope of the deal is a larger one than expected – Gemini models won’t just power Siri, but will be used for more Apple Intelligence features across iPhone, iPad, Mac, Vision Pro and Apple Watch.
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