Google shares rise on report of Apple using Gemini for Siri

Alphabet's stock experienced a notable increase on Friday, following reports that Apple is in preliminary discussions to potentially integrate Google's Gemini AI models into an upgraded version of its Siri voice assistant. Shares of Alphabet climbed over 3% after Bloomberg disclosed that Apple recently approached Google to explore the possibility of developing a custom AI model that could enhance Siri, with plans for a launch as early as next year. Google's Gemini models have consistently performed exceptionally well in critical benchmarks for AI advancements, even as Apple has encountered challenges in establishing its own AI strategy. These discussions come at a crucial time for Google, which is facing the threat of losing its lucrative search partnerships with Apple. A ruling from a U.S. judge is anticipated this month regarding penalties for Google's alleged monopolistic practices in search, with the Department of Justice advocating for the elimination of exclusive agreements with third parties. For Google, this situation directly pertains to its search agreements with Apple, particularly regarding iPhones and Samsung devices, which have cost the company billions annually in payouts. Meanwhile, Google has indicated that its Gemini models will become the default digital assistant on Android devices. This year, Google has showcased Gemini's capabilities that surpass those of Siri, including features like video summarization. Craig Federighi, Apple's senior vice president of software engineering, noted at last year's developer conference that Apple aims to incorporate various AI models within its Apple Intelligence framework, specifically mentioning Google's offerings. Gemini's ability to engage in conversation and process diverse inputs—ranging from photos to voice and text—sets it apart. Additionally, Apple is reportedly exploring collaborations with AI firms like Anthropic and OpenAI as it seeks to redefine its AI strategy. Documents unveiled during Google's remedy trial indicated that Apple executives were involved in negotiations concerning the use of Google's Gemini for a potential search option. Google has opted not to comment on the matter.