Alphabet, Google's parent company, notably sidestepped questions regarding a rumored artificial intelligence (AI) partnership with Apple during its recent fourth-quarter earnings call. The decision to ignore an analyst's inquiry about potential AI collaborations, specifically one involving Apple to power Siri with Google's AI, has left investors and observers speculating about the future of this significant tech alliance.
This deliberate silence suggests Alphabet is not yet prepared to disclose how such a high-profile AI deal might influence its core business strategy, which is increasingly centered on AI development and integration.
The relationship between Google and Apple has historically been mutually beneficial, particularly through their long-standing search partnership. Department of Justice filings revealed that Google paid Apple an estimated $20 billion to maintain its position as the default search engine on Apple devices. In return, Google gained unparalleled access to Apple's vast customer base, which boasts approximately 2.5 billion active devices worldwide.
The rumored latest Apple AI deal, which could see Apple paying Google roughly $1 billion annually, presents a different dynamic. Unlike the clear advertising revenue stream from the search partnership, the immediate financial benefits for Google from this AI collaboration are less apparent.
Google is actively exploring new monetization avenues within its AI initiatives. Last May, the company announced plans to integrate ads into its AI Mode, the chatbot-style interface for Google Search. While currently an “experiment,” these ads are typically placed below or within the chatbot's responses. Google is also testing agentic shopping features, including Shop with AI Mode, designed to guide users through product queries to a seamless checkout experience directly from the AI interface.
Meanwhile, Google's AI competitor, Anthropic, is challenging the ad-supported AI model adopted by OpenAI's ChatGPT and Google. Anthropic's forthcoming Super Bowl ad is expected to highlight this contrasting business model.
The long-term implications of these evolving AI strategies and partnerships remain an open question. During the earnings call, the Apple Siri deal received minimal direct mention. CEO Sundar Pichai only noted his satisfaction that Apple's “preferred cloud provider” would assist in developing “the next generation of Apple foundation models based on Gemini technology.” Google's Chief Business Officer, Philipp Schindler, echoed this exact phrasing, underscoring the company's cautious messaging on the matter.
