Google Hits $4 Trillion Milestone With Landmark Apple AI Deal

Apple Chooses Google Over OpenAI

After months of speculation, Apple has finally selected its AI partner — Google. Beginning in 2026, Siri will undergo a major transformation powered by Google’s Gemini AI models. This marks a complete overhaul of Apple’s voice assistant, which could finally make Siri genuinely useful.

Until recently, Apple was working with OpenAI. The shift signals a decisive change in strategy.

Why Google Secured the Deal

Apple explained that Google’s AI offered “the most capable foundation” for its needs. In simple terms, Gemini is now seen as more advanced than ChatGPT.

Privacy also played a role. Apple is known for strict data protection policies and doesn’t allow partners to train on user data. Google’s cloud infrastructure and ecosystem control likely provided stronger privacy assurances compared to smaller rivals like OpenAI or Anthropic.

What Google Gains

Financially, the deal is significant. Bloomberg reported Apple was paying around $1 billion annually for AI technology. Following the announcement, Google’s market capitalization surged past $4 trillion, cementing its place among the world’s most valuable companies.

The bigger win is distribution. With 1.5 billion iPhone users worldwide, Google’s AI will now be integrated into Siri. Even if a fraction of those users generate revenue through product discovery or purchases, Google stands to benefit enormously — similar to its lucrative search deal with Apple, which reportedly brings in $20 billion annually.

Apple’s Position

For Apple, the partnership is both a relief and a risk. On the positive side, it allows them to deliver a capable AI assistant after repeated delays and setbacks. On the downside, it underscores Apple’s struggle to build competitive AI models independently.

CEO Tim Cook has already appointed a new AI chief with experience at Google. But 2026 will be critical — if Apple fails to launch its own models soon, its reputation for innovation could suffer.

OpenAI’s Setback

The deal is a major blow to OpenAI, which loses direct access to Apple’s massive user base. CEO Sam Altman had previously identified Apple as a key rival, but now Apple has aligned with Google instead.

OpenAI is focusing on a new AI hardware device designed with Jony Ive, but without clarity on Apple’s AI roadmap, positioning it as an “iPhone killer” becomes far more difficult.

The Bottom Line

Google regains dominance, Apple buys time, and OpenAI is forced to rethink its strategy.