Apple-Google Likely Tie-Up for Siri Revamp Puts These ETFs in Focus

Apple AAPL is reportedly in early talks with Alphabet GOOGL for using its Gemini AI models to power a redesigned Siri, per a Bloomberg article, as quoted on Yahoo Finance. The move could mark a major shift in Apple’s strategy toward outsourcing more artificial intelligence (AI) technology.

According to people familiar with the matter, Apple has approached Google to build a custom AI model for Siri, which could be launched next year. Google has already begun training a version that could run on Apple’s servers. Both Apple and Google declined to comment on the discussions.

Keeping Pace With Generative AI

Apple’s much-anticipated Siri upgrade was postponed by a year due to engineering issues. Apple has lagged in the generative AI race, leading it to consider partnerships with Anthropic PBC and OpenAI earlier this year.

Beyond Siri: Expanding AI Partnerships

The Siri talks are separate from Apple’s integration of other AI tools into its ecosystem. Apple already offers ChatGPT as a fallback for general knowledge queries and plans a similar Gemini integration. In iOS 26, ChatGPT is available for image generation. Apple scrapped its own AI-based coding project and went for outside resources like ChatGPT and Claude instead.

ETFs in Focus

Note that there were selloffs in Big Tech stocks in the middle of last week as OpenAI CEO Sam Altman talked about an AI bubble. He recently suggested that the AI industry is currently experiencing a bubble fear, as quoted on CNBC. He hinted that the AI euphoria has led to overinflated expectations from investors.

While the sustainability of the AI investments has now become questionable, AI adoption is indispensable. The recent talks of the Apple-Google deal point to this fact (read: AI Fatigue Hits Tech Biggies: Inverse ETFs in Focus).

It is important to note that Apple, valued at over $3 trillion, finds itself in a tough spot amid the advent of AI. As rivals charge ahead in the AI arena, the iPhone maker remains stagnant. It’s falling short on innovation and watching its market dominance slip with each passing quarter.

Hence, against the volatile tech investment backdrop, investors can play Apple and Alphabet stocks via the basket approach based on the recent rumored partnership. Apple is heavy on exchange-traded funds (ETFs), such as iShares U.S. Technology ETF IYW and Fidelity MSCI Information Technology Index ETF FTEC. Each fund invests about 14% of its weight in Apple stock.

Alphabet has considerable weight in Fidelity MSCI Communication Services Index ETF FCOM and Vanguard Communication Services ETF VOX.

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This article originally published on Zacks Investment Research (zacks.com).

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