Apple and Google just officially announced a multi-year partnership that will use Gemini to power both Apple’s foundational AI models and the long-awaited Siri upgrade expected later this year.

The details:

• The two tech giants published a joint statement confirming the deal, with Apple saying Gemini “provides the most capable foundation” for its AI.
• Bloomberg first reported the potential deal in November, saying Apple was committing roughly $1B annually to license Google’s technology.
• Apple told CNBC that its ChatGPT deal is still intact, while also confirming that its AI features will continue to run on-device and via Private Cloud Compute.
• The announcement briefly pushed Google’s market cap above $4T for the first time, now trailing only Nvidia, Microsoft, and Apple itself.

Why it matters: After a year of rumblings over Siri’s direction, Apple is finally (officially) picking a lane — and one that is outsourcing Siri’s AI struggles to a major competitor. The deal is validation for Google’s massive Gemini rise, and also makes the arrangements with OpenAI a bit awkward, with its biggest rival powering Siri’s brain.