Source TOI
MOUNTAIN VIEW — In a move that solidifies a new era of Silicon Valley cooperation, Alphabet CEO Sundar Pichai has expressed his “pleasure” regarding Google’s deepened alliance with Apple. Speaking during Alphabet’s Q4 2025 earnings call on February 4, 2026, Pichai confirmed that Google is now Apple’s preferred cloud provider and the core engine behind the next generation of Apple’s foundation models.
The announcement marks a historic shift in the relationship between the two tech giants. While they have famously collaborated on search for decades—with Google paying an estimated $20 billion annually for default status—this new agreement pivots toward the future of generative artificial intelligence.
A New Foundation for “Apple Intelligence”
Under the terms of the multi-year deal, Apple will leverage Google’s Gemini 3 technology to overhaul its ecosystem. Key highlights of the partnership include:
Siri’s Transformation: The next generation of Siri will be built upon Google’s foundation models, enabling more complex, conversational, and “agentic” capabilities.
Preferred Cloud Status: Google Cloud will serve as the primary infrastructure supporting Apple’s intensive AI computations.
Custom Models: The companies are co-developing “Apple Foundation Models,” a series of LLMs tailored specifically for the iPhone, iPad, and Mac.
“I’m pleased that we are collaborating with Apple as their preferred cloud provider and to develop the next generation of Apple Foundation models based on Gemini technology,” Pichai told investors, emphasizing that the rollout of Gemini 3 has been a “major milestone” for the company.
Strategic Implications
The deal is widely seen as a “win-win” in the high-stakes AI arms race. For Apple, the partnership allows it to quickly bridge the gap with competitors like OpenAI and Anthropic by utilizing Google’s state-of-the-art models. For Google, it secures a foothold in over 2.5 billion active Apple devices, ensuring Gemini becomes the industry standard for consumer AI.
Feature Details
Core Technology Gemini 3 Flash / Pro
Primary Integration Siri & Apple Intelligence
Financial Value Estimated $1 billion annual licensing fee
Privacy Standards Processed via Apple’s Private Cloud Compute
Despite the collaborative tone, Alphabet executives remained tight-lipped regarding the specific financial impact of the deal. Analysts note that while the $1 billion reported licensing fee is lower than the search payout, the strategic value of keeping Gemini at the center of the mobile experience is “unparalleled.”
Looking Ahead
The first fruits of this collaboration are expected to debut in late February 2026, with a public release rumored for the spring via iOS 26.4. Users can expect a Siri that understands personal context across apps—capable of tasks like finding a specific flight detail in an email and automatically adding it to a calendar event.
