Alphabet Stock Surges 3.17% on Apple-Backed AI Pact Spikes to Sixth in Trading Volume

Alphabet’s stock closed 3.17% higher on August 22, 2025, with a trading volume of $8.80 billion—a 122.18% surge from the previous day, ranking sixth in market activity. The rally followed reports of Apple exploring the use of Google’s Gemini AI to power a redesigned Siri voice assistant, signaling a potential strategic shift in AI development for both companies.

The discussions, still in early stages, involve Alphabet training a custom Gemini model for Apple’s servers to underpin a next-generation Siri expected in 2026. This move aligns with Apple’s broader effort to accelerate its AI capabilities after delays in internal projects. Google’s Gemini, which has led AI performance benchmarks, could offer Apple a competitive edge in features like multimodal processing (text, voice, video), areas where Siri has lagged. However, the partnership remains exploratory, with no formal agreements or financial terms outlined.

Regulatory risks linger for Alphabet, as the U.S. Justice Department scrutinizes its $10 billion annual search deal with Apple. A potential termination of this agreement could pressure Google’s revenue, though the AI collaboration might offset some of these risks by expanding Gemini’s market reach. Meanwhile, Apple’s internal AI team faces instability, with key executives leaving for rival firms, prompting management to prioritize external partnerships to meet its AI roadmap.

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