Apple, Alphabet Stocks Surge on AI Collaboration Talks

Apple Inc. is reportedly in talks with Alphabet Inc. to utilize the latter's artificial intelligence model, Gemini, for the next iteration of its voice assistant, Siri. This potential collaboration has garnered significant attention, with Alphabet's stock price surging to a new historical high of $208.54 during intraday trading, closing at $206.09, a 3.17% increase. Apple's stock also saw a rise of 1.27%, closing at $227.76.

Mark Gurman, a prominent Apple analyst, revealed that Apple has engaged in discussions with Google to explore the possibility of developing a customized AI model based on Gemini for an "AI-enhanced Siri." Gurman noted that Apple is currently evaluating whether to continue with its in-house AI model or to seek external partnerships.

This potential collaboration comes at a pivotal moment for both companies. Alphabet is awaiting further rulings from a U.S. federal judge following last year's antitrust ruling, which found the company to have monopolistic practices in general search services and text advertising. Possible remedies include forcing Google to share search data with competitors, divesting the Chrome browser, or prohibiting exclusive search agreements with companies like Apple.

For Apple, the move is seen as a response to investor and user dissatisfaction with the company's slow progress in the AI sector. The AI-enhanced version of Siri, initially slated for release this year, has been delayed until next year. Apple has previously explored partnerships with other AI companies, including OpenAI and Anthropic.

Analysts have expressed optimism about the potential collaboration. The integration of Gemini could accelerate the deployment of generative AI applications and provide Apple with a more capital-efficient way to advance its AI strategy. This move is seen as a strategic response to concerns about Apple falling behind in the AI race, and it could be well-received by the market.