Apple has decided to run its next-generation artificial intelligence (AI) features on Google’s “Gemini” technology. As Apple, which has struggled in the AI field, extends a hand to Google, there are evaluations that Google has seized the upper hand in the AI war.

On the 12th (local time), Apple and Google announced in a joint statement that they had signed a multi-year cooperation agreement to build the next-generation “Apple Foundation Model” based on Google’s Gemini model and cloud technology.

● Apple: “Google Gemini is the most capable foundation”

Under this cooperation, the technological capabilities of Gemini will be used for core functions of next-generation Apple Intelligence, including the AI features of Siri, which is scheduled for release at the end of this year. However, to protect personal data, devices will be equipped with Apple’s own on-device AI, “Apple Intelligence.”

Apple stated in the announcement, “We determined that Google’s AI technology has the most suitable capabilities for the Apple Foundation Model.” Apple was known to have reviewed several candidates such as OpenAI and Anthropic, but ultimately chose Google.

● Google’s market cap surpasses USD 4 trillion… Overtakes Apple

Markets reacted immediately to the news. On the New York Stock Exchange that day, the share price of Alphabet, Google’s parent company, rose 1.09% to close at USD 332.73. Its market capitalization surpassed USD 4.016 trillion (approximately KRW 5,900 trillion).

With this, Alphabet became the fourth company in history to join the “USD 4 trillion market capitalization club,” following NVIDIA, Apple, and Microsoft. Currently, only NVIDIA and Alphabet remain at this level, with Alphabet’s market capitalization rising to second place globally.

Dan Ives of Wedbush Securities assessed, “This partnership is a critical validation moment for Google and a decisive stepping stone for Apple to put its AI strategy on the right track targeting the period after 2026.”

● Ongoing internal turmoil at Apple… Finds breakthrough by joining hands with Google

Behind Apple’s latest decision lies the painful underperformance of its in-house AI. The AI-powered Siri, initially scheduled for release in April last year, was postponed to the end of this year, while key talent left for companies such as Meta, resulting in continued internal turmoil. In the end, Apple dropped its insistence on purely independent development and sought a breakthrough through an alliance with Google.

As two ultra-large Big Tech companies join forces, concerns over monopoly are growing. Tesla CEO Elon Musk criticized the deal, saying, “Handing AI power over to Google, which already owns Android and Chrome, is an unreasonable concentration of power.”

An industry insider said, “With this cooperation, Google has gained a powerful ally that will draw hundreds of millions of iPhone users worldwide into the Gemini ecosystem,” adding, “It will effectively be the decisive blow that enables Google to solidify its lead in the generative AI war.”

Popular News