Apple Investors Are Still Waiting for an AI Siri. A New Deal With Google Could Finally Deliver It

Apple's AI ambitions have hit a wall—and the key to breaking through might be a deal with its oldest rival.

The Siri Stalemate

For years, Apple investors have been promised a smarter, more conversational Siri. The vision: an AI assistant that doesn't just set timers but truly understands context. The reality? A product roadmap that's seen more delays than a legacy bank's blockchain integration. While competitors launched chatbots and multimodal models, Apple's "AI" announcements often felt like iterative updates wrapped in marketing gloss.

The Google Gambit

Enter Google. Rumors of renewed talks between the tech titans suggest Apple might license Google's Gemini AI to supercharge Siri. It's a move that bypasses years of internal R&D struggles. Think of it as outsourcing the brain while keeping the iconic voice. The potential deal cuts development time from years to months—letting Apple leapfrog its own technological hurdles.

For Google, it's a masterstroke in distribution. Placing its AI inside billions of Apple devices would be a market penetration play that makes most crypto exchange listings look quaint. The financials? Analysts whisper about a multi-billion dollar annual stream—chump change for Apple's war chest, but a nice consolation prize for missing the smartphone dominance it once chased.

The Investor Calculus

Wall Street's patience wears thinner than a trader's margin on a volatile altcoin. Each Apple event without a transformative AI reveal sends subtle tremors through the stock—a far cry from the moonshot rallies crypto natives celebrate. A Google deal wouldn't just be a tech partnership; it would be a signal to investors that Apple is serious about catching up, even if it means swallowing its pride.

The cynical take? It's another case of big tech realizing innovation is hard, so why not just rent it from someone else—a move so financially prudent it would make a traditional fund manager blush. But in the race for AI supremacy, pragmatism often beats purity. If a Google-powered Siri finally delivers, will anyone care whose algorithms made it sing?

Key Takeaways

• Apple plans to use Google's Gemini to power future Apple Intelligence features, the companies said Monday. 
• The new features are set to include an AI-enhanced Siri due later this year.

Could a new deal with Google help Apple sell investors on its AI Vision?

The iPhone maker plans to use Google's Gemini to power future Apple Intelligence features, including an AI-enhanced Siri coming later this year, the companies said Monday, ending months of speculation about a tie-up. 

Shares of Google parent Alphabet (GOOGL) climbed 1% to an all-time high following the news, pushing its end-of-day market capitalization above the $4 trillion mark for the first time. Apple (AAPL) shares ticked up 0.3%, leaving them about 9% off their highs last month.

Why This Matters for Investors

The deal with Google could help Apple, which has lagged many of its peers when it comes to AI, boost confidence in its progress.

Wedbush's Dan Ives, a longtime Apple and Alphabet bull, called the deal a "major validation moment" for Google's Gemini and a key "stepping stone" for Apple in its strategy after a series of delays in some of its highly anticipated AI features. The iPhone Maker had previously suggested its AI-powered Siri would become available as early as last spring, before later telling investors it would launch this year.

JPMorgan analysts, who hold an "overweight" rating for Apple, said they also see the multi-year partnership with Google potentially becoming a longer-term arrangement, with investors likely to be watching whether Apple will declare an AI model partner in China next.

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"In our view the Street is underestimating what 2026 is going to bring for Apple," said Ives, citing expectations the company could make more meaningful progress in its AI roadmap this year. He reiterated a Street-high target of $350 for the stock, suggesting close to 35% upside from Monday's close.