Apple Inc. has entered into a multi-year agreement with Google to use its next-generation AI models, according to a joint statement. The partnership will help power the anticipated Siri 2.0 upgrade.
Evercore ISI analyst Amit Daryanani reiterated an Outperform rating on Apple stock on January 12, with a price target of $330.00. The firm highlighted the new AI collaboration with Google Gemini, pointing to potential monetization benefits and custom AI experiences ahead.
The statement revealed that Apple's foundation models and cloud technology will be based on Google's Gemini models. These models have received positive feedback since the launch of Gemini 3.0 last year. The upgrade is expected to be announced in the coming months.
"After careful evaluation, Apple determined Google's AI technology provides the most capable foundation for Apple Foundation Models," the joint statement noted. It did not include financial terms, but prior reports indicated Apple would pay approximately $1 billion annually to license the roughly 1.2 trillion parameter model.
Evercore ISI believes the partnership allows Apple to upgrade its current model stack and paves the way for potential monetization. Following the announcement, investors should anticipate an Apple Intelligence 2.0 announcement alongside a more custom and personal Siri experience in the upcoming months.