"Apple and Google's surprise AI partnership announcement on Monday sent shockwaves across the tech industry (and lifted Google's market cap above $4 trillion). The two tech giants' deal to infuse Google's AI technology into Apple's mobile software, including in an updated version of the Siri digital assistant, has major implications in the high-stakes battle to dominate AI and to own the platform that will define the next generation of computing."
"The search giant at times appeared to be floundering as it raced to field models that could be as capable as OpenAI' s ChatGPT and Anthropic's Claude. Google endured several embarrassing product debuts, when its Bard chatbot and then its successor Gemini models got facts wrong, recommended glue as a pizza topping, and generated images of historically anachronistic Black Nazis."
Apple and Google formed a partnership to integrate Google's AI into Apple's mobile software and to update Siri. The agreement signals validation of Google's Gemini models and has boosted Google's market capitalization. Google Cloud has attracted customers partly because of bespoke TPUs that may offer cost and speed advantages over GPUs for running AI models. Google recovered from prior product missteps and now offers competitive AI capabilities. Apple gains advanced AI foundations but faces unanswered questions about financial terms and deal duration. The partnership reshapes competition for platform control and poses risks to rivals like OpenAI.
Read at Fortune
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