Apple and Google have announced a multi-year partnership that will see Google’s Gemini models used to power Apple’s foundational AI systems and the long-awaited next-generation upgrade to Siri.

In a joint statement, Apple said Gemini “provides the most capable foundation” for its AI ambitions. The partnership formalizes months of speculation, following earlier reports that Apple was evaluating multiple external AI model providers.

Bloomberg previously reported that Apple could commit roughly $1 billion annually to license Google’s AI technology. Apple also told CNBC that its separate ChatGPT integration remains intact, and confirmed that many AI features will continue to run on-device and through Apple’s Private Cloud Compute infrastructure.

The announcement briefly pushed Google’s market capitalization above $4 trillion for the first time, placing it alongside Nvidia, Microsoft, and Apple as one of the world’s most valuable companies.

Why it matters: After prolonged uncertainty around Siri’s direction, Apple is now clearly outsourcing key AI capabilities to a major competitor. The deal validates Google’s rapid Gemini progress while reshaping the competitive dynamics between Apple, Google, and OpenAI in consumer AI platforms.