BusinessLine·2026-01-13 01:23Core Insights - Apple is partnering with Google to enhance its virtual assistant Siri and integrate AI features into its products, indicating a strategic move to catch up in the AI sector [1][2][3] Partnership Details - The collaboration will utilize Google's Gemini technology to develop a suite of AI features named "Apple Intelligence" for the iPhone and other Apple products [2] - This partnership marks a significant shift for Apple, which has lagged behind competitors like Google and Samsung in AI advancements [3][4] Current Status of AI Features - Many of Apple's planned AI features are still under development, with a notable delay in the promised overhaul of Siri, now expected to be completed by 2026 [4][5] - Google's advancements in AI have been highlighted through its own product releases, contrasting with Apple's slower progress [4] Market Implications - The partnership is seen as a validation for Google, which has been enhancing its AI capabilities, leading to a market valuation shift where Alphabet Inc. briefly surpassed Apple in market value, reaching over USD 4 trillion [7][8] - The competition in the AI space has intensified, with companies like Nvidia also achieving significant market valuations, indicating a broader market shift influenced by AI technology [9][10] Stock Performance - Alphabet's stock has seen substantial growth, increasing by 36% since a legal ruling that allowed it to maintain its market position, adding approximately USD 1.4 trillion in shareholder wealth [11][12] - The ongoing relationship between Google and Apple, particularly regarding search engine agreements, remains intact, with Google paying Apple over USD 20 billion annually [13]