Apple Inc. (NASDAQ:AAPL) is stepping up its artificial intelligence push as competition intensifies across Big Tech and investor focus sharpens on how quickly the company can deliver meaningful AI upgrades.
Apple Taps Google To Power AI Features
Apple is teaming up with Alphabet Inc.'s (NASDAQ:GOOGL) Google to power upcoming artificial intelligence features, including future versions of Siri, as it moves to strengthen its AI capabilities.
Under a multi-year partnership, Apple will rely on Google's Gemini models and cloud technology to support its Apple Foundation Models, according to a statement obtained by CNBC's Jim Cramer.
Bloomberg previously reported in August that Apple was in early talks with Google to use a customized Gemini model for a new iteration of Siri.
The announcement comes as Google's market capitalization surpassed Apple's last week for the first time since 2019, with Google briefly touching a $4 trillion valuation.
Apple has largely remained on the sidelines of the AI boom that followed OpenAI's ChatGPT launch in late 2022, while competitors such as Amazon, Meta Platforms, and Microsoft continue to invest heavily in AI products and tools.
Meanwhile, Google has continued to advance its AI strategy, rolling out its upgraded Gemini 3 model late last year.
Analyst Sees 2026 Catalysts For Apple
Wedbush analyst Dan Ives laid out a bullish roadmap for Apple, pointing to several strategic and financial catalysts he believes could lift the stock in 2026 despite continued skepticism around Apple's role in the AI race.
Ives said a potential partnership with Google's Gemini platform sits at the top of the list, adding that he expects Gemini to become the exclusive partner for Apple's AI strategy.
He described Apple's lack of a clearly defined AI roadmap as the key issue, even as the company commands the largest consumer installed base globally, with 2.4 billion iOS devices and 1.5 billion iPhones, suggesting a partnership-driven approach makes sense.
He also expects Apple to roll out a revamped Siri in early 2026 as its response to leading AI assistants, and said iPhone unit sales in 2026 could exceed current Street estimates, driven by strength in China and the expected launch of a foldable device during the iPhone 18 cycle.
Ives dismissed speculation about CEO Tim Cook stepping down, saying he expects Cook to remain in place through at least the end of 2027, which he views as a critical period for Apple to design and execute its broader AI strategy.
Price Action: Alphabet shares were up 0.37% at $329.77 and Apple shares were up 0.39% at $260.37 at the time of publication on Monday, according to Benzinga Pro data.
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