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Alphabet and Apple Forge AI Partnership, Propelling Alphabet to $4T Market Cap

Alphabet and Apple Forge AI Partnership, Propelling Alphabet to $4T Market Cap

Published:
2026-01-12 18:08:02
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BTCCSquare news:

Alphabet Inc. (GOOGL) and Apple Inc. (AAPL) have finalized a multi-year agreement to integrate Google's Gemini AI technology into Apple's next-generation AI models. The deal, announced Monday, will see Google's AI powering Apple's upcoming "Apple Intelligence" features, including an overhauled Siri expected to debut later this year.

Google emphasized that Apple's privacy standards will remain intact, with AI processing occurring on-device or through Apple's Private Cloud Compute. Analysts anticipate the AI-enhanced Siri rollout as early as March, marking Apple's long-awaited entry into the generative AI arena.

Alphabet's shares surged on the news, briefly pushing its market capitalization to $4 trillion before settling at $3.98 trillion. The tech giant now joins an exclusive club with Apple, Microsoft, and Nvidia as the only companies to breach the $4 trillion valuation threshold.

Market analysts responded with bullish outlooks for both companies. Wedbush Securities' Daniel Ives called the partnership "what the Street has been waiting for," suggesting it resolves lingering questions about Apple's AI strategy. The collaboration represents a significant validation for Google's AI capabilities while providing Apple with immediate access to cutting-edge technology.

|Square

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