Alphabet will report fourth-quarter earnings on Wednesday, providing executives their first chance to discuss the company’s new artificial intelligence partnership with Apple. Investors anticipate details on the deal announced by Apple in January, under which Google’s Gemini AI will power an overhaul of Siri.
Analysts project 15 percent year-over-year growth in Google’s revenue. However, attention centers on updates about the Siri-Gemini collaboration. The multi-year agreement positions Gemini at the center of Apple’s next-generation foundation models. These models will drive future Apple Intelligence features, including a more personalized Siri expected later this year.
Bloomberg reports Apple will pay about $1 billion annually for a custom Gemini model with 1.2 trillion parameters. This represents an upgrade from Apple’s current 150 billion-parameter system. Analysts described the deal as a win for Google against rivals OpenAI and Anthropic. Michael Nathanson of MoffettNathanson told CNBC, “There was significant concern on Wall Street that Apple might lean toward OpenAI or Perplexity, but that now seems less likely.” Apple selected Google over Anthropic, which requested roughly $1.5 billion annually.
The partnership builds on an existing arrangement where Google pays Apple an estimated $20 billion yearly to serve as the default search engine on Apple devices.
Bloomberg’s Mark Gurman states Apple plans to unveil the Gemini-powered Siri in the second half of February. The update will appear in iOS 26.4 beta. The enhanced assistant will better understand on-screen content, use personal context for tasks, and provide more conversational responses. Apple promised these capabilities at WWDC 2024, but delays arose from technical issues.
During Apple’s Q1 2026 earnings call last week, CEO Tim Cook confirmed the partnership. He said a “more personalized Siri is coming this year” and noted Siri will not access users’ Gmail “and stuff like that.” Apple Intelligence will run on Apple devices and Private Cloud Compute servers, upholding “industry-leading privacy standards,” according to the companies.
Some analysts raise concerns that Apple’s greater use of Google’s cloud infrastructure might allow Google increased access to user data over time.
The agreement prompts questions about Apple’s current integration of OpenAI’s ChatGPT with Siri for complex queries. Apple informed CNBC of “no alterations to the existing agreement,” though details on coexistence remain unclear. One analyst described ChatGPT’s position under the new deal as a “supporting role” on Apple devices.
