Siri welcomes "Gemini AI base"! Apple joins forces with Google to innovate in the field of AI at the edge, and Alphabet's market value surpasses $4 trillion.

The US tech giant Alphabet's Alphabet Inc. Class C (Google) has confirmed that it has reached a multi-year agreement with Apple Inc., a leading consumer electronics company that owns the most popular smart products in the world such as the iPhone and iPad series. Under this agreement, Alphabet Inc. Class C will provide core AI model support for Apple's iPhone brand, including embedding new AI features in the updated Siri AI voice assistant. This collaboration is a significant positive development for both companies. Apple's Siri will finally undergo a breakthrough transformation based on AI, and Alphabet Inc. Class C's parent company Alphabet has reached a market value of over $4 trillion due to the multi-year agreement with Apple Inc., making it the second largest company in terms of market value after NVIDIA Corporation ($4.5 trillion). In a joint statement released on Monday, the two companies stated, "After careful evaluation, Apple Inc. has recognized Alphabet Inc. Class C's AI technology as the most capable and powerful foundation for Apple Foundation Models, and is extremely excited about the innovative AI experiences it will unlock for Apple Inc. users." The specific terms of the agreement were not disclosed. Earlier reports at the end of last year indicated that these two global tech giants were finalizing such an agreement, with sources revealing that Apple Inc. planned to pay Alphabet Inc. Class C approximately $1 billion annually. As of the closing of the US stock market on Monday, Alphabet Inc. Class C's parent company Alphabet's stock price reversed its downward trend to rise by 1% after the announcement of the official collaboration between the two parties, while Apple Inc.'s stock price at the close increased by less than 1%. In the statement, both companies mentioned that Apple Inc. will continue to operate its Apple Intelligence AI services on user consumer electronic devices, or through Private Cloud Compute - a secure online large-scale cloud computing system, to maintain its cloud-based AI services under its privacy standards. Alphabet Inc. Class C's exclusive Gemini AI model technology will help support the upcoming new version of Siri AI voice assistant that Apple Inc. plans to launch this year. Previously, Apple Inc.'s attempts to develop advanced large models to upgrade Siri voice assistant were constantly delayed indefinitely, part of the setback in launching more comprehensive AI features. According to a joint statement from Alphabet Inc. Class C and Apple Inc., Apple's next-generation Apple Foundation Models will be based on Gemini's exclusive AI model and cloud computing technology, and will be used for new Apple Inc. exclusive AI features such as a "more personalized Siri AI voice assistant," while the current Apple Intelligence AI features will continue for Apple Inc. users. In other words, it is highly probable that Apple Inc. will continue to control local capabilities (such as wake-up, lightweight semantics, offline tasks, low-latency personalization, etc.) with small models on the edge; while more advanced reasoning functionality, generative conversations, multi-step task planning based on AI intelligence bodies, and stronger knowledge/multimodal capabilities will be supported by Alphabet Inc. Class C's Gemini AI model as the core engine, and privacy and performance will be perfectly balanced through a hybrid architecture of edge + private cloud. According to sources cited by the media on January 12th, Apple Inc. will use Alphabet Inc. Class C's Gemini AI model in the new version of Siri AI voice assistant planned for release this year as part of a multi-year agreement, and Alphabet Inc. Class C has stated that its model will also provide technical support for other core Apple Intelligence functions; at the same time, Apple Intelligence will continue to run on consumer electronic devices and through Private Cloud Compute, maintaining consistent privacy standards.