In a landmark move that will reshape the artificial intelligence landscape for millions of users, Alphabet Inc.'s Google has officially confirmed a multiyear agreement with Apple Inc. The deal will see Google's AI technology integrated into Apple's ecosystem, most notably to power a new version of the Siri voice assistant expected later this year.
A Strategic Alliance Confirmed
Google made the announcement on Monday, January 12, 2026, via a post on the social media platform X. The company stated that after a careful evaluation process, Apple determined Google's AI technology offered the most capable foundation for its Apple Foundation Models. While specific financial terms were not disclosed, previous reports from Bloomberg indicated the deal could be valued at approximately US$1 billion per year.
The confirmation follows months of speculation after Bloomberg initially reported late last year that the two tech titans were finalizing such a partnership. This collaboration represents a significant strategic shift for Apple, which has faced its own challenges in developing advanced AI features in-house.
Privacy and Performance Promises
In its statement, Google addressed potential privacy concerns, a critical issue for Apple's customer base. The company assured that Apple will maintain its stringent privacy standards by running AI services directly on users' devices or through a secure online system known as Private Cloud Compute.
This technological infusion is poised to support a major Siri overhaul. Apple had previously delayed this Siri update due to development hurdles, which were part of the company's broader struggles to roll out competitive AI features in a rapidly evolving market. The Google-powered technology is intended to unlock what the company calls "innovative new experiences" for Apple users worldwide.
Market Reaction and Broader Implications
The news had an immediate impact on financial markets. Following the announcement, shares of Alphabet (Google's parent company) rose as much as 1.7 percent, while Apple's stock saw a more modest increase of less than one percent.
This partnership underscores the intense competition and high costs associated with developing cutting-edge AI. For Apple, leveraging Google's established AI prowess allows it to accelerate its feature rollout and remain competitive against rivals. For Google, the deal represents a massive and lucrative validation of its AI technology, embedding its systems deeper into the iOS ecosystem used by countless consumers, including those across Canada.
A representative for Apple, which is based in Cupertino, California, did not immediately respond to requests for comment on the finalized deal. The collaboration sets the stage for a new era of AI-driven features on iPhones and other Apple devices, with the first major updates expected to arrive before the end of 2026.
