Google Gemini secures Apple's Siri deal, positioning Alphabet to dominate the AI industry

Gemini is winning

If you want to win in AI -- and I mean win in the biggest, most lucrative, most shape-the-world-in-your-image kind of way -- you have to do a bunch of hard things simultaneously. You need to have a model that is unquestionably one of the best on the market. You need the nearly infinite resources required to continue to improve that mode and deploy it at massive scale. You need at least one AI-based product that lots of people use, and ideally more than one. And you need access to as much of your users' other data -- their personal information, their online activity, even the files on their computer -- as you can possibly get. Each one of these elements is complex and competitive; there's a reason OpenAI CEO Sam Altman keeps shouting about how he needs trillions of dollars in compute alone. But Google is the one company that appears to have all of the pieces already in order. Over the last year, and even in the last few days, the company has made moves that suggest it is ready to be the biggest and most impactful force in AI. A lot of the necessary infrastructural work happened last year. In November, Google released Gemini 3, which is widely regarded as the best overall large language model on the market. It wins in most (somewhat dubious) benchmark tests, and most experts agree it is either at or near the top of the list for most tasks. Its reign won't be forever, of course -- we're still very much in the "there's a new best model every six weeks" phase of AI -- but Google has proven its best work is consistently the industry's best work. One important factor for Gemini 3 was the way it was trained: using Google's own TPUs, a highly specialized chip the company has been building for years for exactly this sort of purpose. Google is certainly susceptible to some of the manufacturing problems and RAM price hikes everyone else is, but unlike nearly all of its competitors, it's not dependent on Nvidia's supply chain. Google is able to optimize its entire system to make it better, faster, and cheaper. Nobody else has this kind of full-stack control of its AI destiny. So what do you do when you have the tech in place? Put it in front of people and put it to work. On Monday, Google and Apple announced that Gemini will power the next-generation Siri that's coming later this year. This is a big win for Apple, which is reportedly paying $1 billion a year in the hopes of turning Siri into an AI assistant that is actually useful for a change. For Google, it's just as important. Apple saying "this is the best technology available" is obviously a powerful signal to the market, but even more than that, Siri immediately becomes one of the most popular ways people will interact with Gemini. Apple's Craig Federighi said in 2024 that Siri processes "something like 1.5 billion requests every day," and while we don't know the exact details of the new deal, presumably some large percentage of those will soon run through Gemini. (Here's hoping "set a timer," the only thing Siri continues to do well, doesn't get a new and more complicated back end.) Compare that to ChatGPT, which Altman said last year gets 2.5 billion prompts per day. The Gemini app is growing fast yet still way behind ChatGPT, but adding Siri to the mix will help Google catch up more quickly. A technology deal is not the same as Gemini fully usurping Siri, of course, and Google would surely like to also have Siri punt questions to Gemini the way it currently does with ChatGPT. But the deal still matters because every user matters: The more user activity and data these companies can collect, the better their models and products can be. The recent search trial was in part about this very flywheel, and it holds just as true with AI. Google's other announcement this week is an even bigger flex. It announced an opt-in feature called "Personal Intelligence," which connects Gemini to the vast ocean of information Google has about you in order to give you better responses. Every time you ask it a question, Gemini can now answer it by looking at your recent searches, the videos you watch on YouTube, your emails, your photos, your files, your Chrome history, and more. You really can't overstate how big a deal this is: Google no longer has to ask you to give it lots of context, hope you provide excellent and detailed prompts every time, or build out complicated custom instruction systems. Google already knows a scary amount about you, and now Gemini does, too. Right now, Personal Intelligence is in beta for a subset of paying AI customers. Eventually, Google plans to bring it to everyone, everywhere. And it plans to bring it to the most important Google product of all, the most popular webpage on the planet: its search engine. AI Mode in Search is for now still just a tab to the side of the general search results, but Google very clearly sees it as the future of Search. And it wants to turn Gemini into a portal to all of Google's data about you, the internet, and the world. In 2022, when ChatGPT launched, it was clear that Google had been caught flat-footed. But credit where it's due: For a company not exactly known for its ability to focus on a coherent product strategy, Google managed to marshal its considerable resources in a single direction. Now, if chatbots are in fact the future -- and most of the AI industry continues to bet that they are -- there is simply no other company currently set up to truly compete with Google. Google has the models. It has the resources to improve them. It now has the distribution necessary to get people to use its bots, and the data required to make them uniquely personal and useful. At least for now, ChatGPT has the brand power, and the daily active users. But Google has almost everything else. Even the iPhone.

From Gemini 3 to YouTube & Android : Why Google's AI Strategy is Tough to Beat

What does it take to dominate the rapidly evolving world of artificial intelligence? The AI Grid walks through how Google has not only positioned itself as a leader in the AI race but also redefined what it means to integrate innovative technology into everyday life. With billions of users relying on its platforms like Google Search, Gmail, and YouTube, Google has used its vast ecosystem to make AI more accessible and impactful than ever before. But what truly sets the tech giant apart is its ability to balance affordability with innovation, offering advanced features like the multimodal powerhouse Gemini 3 and seamless integration across its services. This isn't just about technology; it's about creating an AI-driven future that feels both intuitive and indispensable. In this breakdown, we'll explore the strategies that have propelled Google to the forefront of AI innovation, from its bold financial investments to its unmatched distribution network. You'll discover how Google's ecosystem-driven approach and products like Notebook LM and VO 3.1 are reshaping productivity and creativity for millions. We'll also examine the challenges its competitors face, from scalability issues to financial instability, and why Google's momentum shows no signs of slowing. Whether you're curious about the future of AI or how Google is shaping it, this analysis offers a glimpse into the forces driving one of the most fantastic industries of our time. Google's AI Dominance Affordable AI with Comprehensive Value Google's pricing strategy plays a pivotal role in its success, offering a balance of affordability and advanced functionality. The company's AI subscription model, exemplified by Google AI Ultra, provides users with a robust suite of tools and features at a competitive price point. Subscribers gain access to: * Gemini 3, a innovative multimodal AI system capable of handling complex tasks. * VO 3.1, designed for voice and multimodal applications. * 25,000 monthly AI credits for extensive usage. * 30TB of cloud storage for data management and collaboration. * YouTube Premium for an enhanced media experience. These features cater to a diverse audience, from individual users to businesses, offering tools for coding, image recognition, and natural language processing. This comprehensive value proposition ensures that Google's AI offerings remain versatile, accessible, and appealing to a broad spectrum of users. By combining affordability with advanced capabilities, Google effectively provide widespread access tos AI technology, making it a practical choice for both personal and professional applications. Innovative Products Driving Superiority At the core of Google's AI dominance lies its flagship product, Gemini 3. This multimodal AI system rivals OpenAI's GPT-5 in performance, excelling in areas such as coding, image analysis, and natural language understanding. Gemini 3's versatility and efficiency make it a cornerstone of Google's AI ecosystem, allowing users to tackle complex tasks with ease. Complementing Gemini 3 are other innovative tools like Notebook LM and VO 3.1, which enhance productivity and streamline workflows. Notebook LM, for instance, offers advanced note-taking and organizational capabilities, while VO 3.1 excels in voice recognition and multimodal tasks. These tools are seamlessly integrated into Google's widely used platforms, including Google Search, Gmail, and Google Docs. This integration eliminates the need for standalone AI tools, providing users with a unified and intuitive experience. Beyond software, Google's advancements in emerging technologies further underscore its commitment to innovation. For example, its research into Antigravity technology highlights the company's ambition to push the boundaries of what is possible. These efforts, combined with its robust AI offerings, position Google as a leader not only in AI but also in the broader field of technological advancement. How Google is Winning The AI Race Check out more relevant guides from our extensive collection on Google AI that you might find useful. Unmatched Distribution Network Google's extensive distribution network is a critical factor in its success, making sure that its AI tools reach a vast audience. By embedding AI capabilities into platforms with massive user bases, Google guarantees widespread adoption and seamless integration into users' daily lives. The scale of its reach is unparalleled: * Google Search serves 3 billion users daily, making it a cornerstone of online activity. * Gmail and Google Docs reach 2 billion and 1 billion users, respectively, facilitating communication and productivity. * YouTube attracts 2.7 billion monthly users, offering a platform for both entertainment and education. * Android powers 3 billion devices worldwide, making sure that Google's AI tools are accessible on a global scale. This integration allows users to access AI tools without switching platforms, creating a seamless and convenient experience. Additional products like Chrome and Google Maps further expand Google's reach, solidifying its dominance in the AI ecosystem. By using its distribution network, Google ensures that its AI innovations are not only accessible but also deeply embedded into the fabric of modern digital life. Competitors Struggle to Keep Pace While Google continues to thrive, its competitors face significant challenges in keeping up. OpenAI, for instance, is projected to incur $17 billion in financial losses by 2026 due to high operational costs and underpriced subscriptions. This financial strain limits its ability to scale and compete with Google's extensive resources and ecosystem. Other players, such as Anthropic, DeepSeek, and Grock, show promise in niche markets but lack the comprehensive ecosystem and user base that Google commands. Their reliance on external funding and limited scalability further hinder their ability to challenge Google's dominance in the broader AI landscape. These limitations highlight the significant gap between Google and its competitors, underscoring the importance of financial stability, user reach, and ecosystem integration in achieving long-term success in the AI industry. Financial Strength as a Competitive Edge Google's financial resources are a cornerstone of its success, providing the company with the means to sustain innovation and maintain competitive pricing. With $70 billion in annual profit and an $85 billion investment in AI and cloud infrastructure, Google has the financial stability to absorb development costs while continuing to expand its offerings. In contrast, competitors like OpenAI rely heavily on external funding, which constrains their ability to invest in long-term growth. This reliance on external capital creates vulnerabilities, particularly in an industry as resource-intensive as AI. Google's financial strength ensures that it can outlast rivals, maintaining its leadership position and continuing to drive innovation in the AI sector. Momentum in the AI Market Market data highlights Google's growing momentum in the AI sector. Surveys and user traffic analyses reveal a shift toward Google Gemini as a preferred AI tool. Users value the integration of AI into everyday platforms, which simplifies workflows and enhances productivity. This trend underscores Google's ability to meet user needs more effectively than standalone AI solutions, further solidifying its position as a leader in the industry. Looking Ahead: Google's Vision for AI Google's investments in robotics and autonomous vehicles further demonstrate its commitment to shaping the future of AI. Partnerships with companies like Boston Dynamics and Apollo Robotics highlight its focus on advancing robotics technology, while Waymo's progress in self-driving cars showcases its expertise in autonomous mobility. These initiatives, combined with Google's robust ecosystem, position the company as a long-term leader in AI innovation. While competitors like Anthropic and Grock may find success in specialized markets, Google's financial resources, product superiority, and distribution network ensure its dominance in the broader AI landscape. As the industry evolves, Google's strategic approach and commitment to innovation will likely keep it at the forefront of technological advancement.

With Gemini Powering Apple's Siri, Alphabet Could Soon Be the Undisputed AI Leader

The new collaboration gives Alphabet the AI momentum it needs. Alphabet (GOOG 2.48%) (GOOGL 2.43%) looked like an artificial intelligence (AI) laggard just a few years ago compared to its new rival OpenAI and its popular ChatGPT bot. But oh, how times have changed. With Alphabet and Apple (AAPL 3.68%) recently announcing that Google Gemini will be the foundational AI model for the next iteration of Siri, Alphabet could be closing in on AI chatbot dominance. While no specific financial details have been released, some reports have said the collaboration could be worth billions of dollars for Alphabet. What's more, it could propel Alphabet to the top of artificial intelligence pack. Apple's problem is Alphabet's gain To grasp how important all of this is, we first need to understand how far Apple has fallen behind its peers recently. I've said before that Alphabet was caught flatfooted when ChatGPT was released, and, if that's true, Apple was in a full-blown nap. Siri was already a glaring disappointment for years, and when ChatGPT launched it made Siri look like an antique. It caused Apple to finally snap out of its slumber, but the problem was that its own AI models apparently haven't proved sufficient. The company touted its own Apple Intelligence features for the iPhone but then delayed them, much to users' and investors' disappointment. Apple's AI fix, up until now, has been to partner with OpenAI to offload users' queries to ChatGPT when Siri can't handle them. But, according to some reporting, OpenAI didn't want to remain Apple's main AI collaborator as it pursues its own devices. The result is that iPhone users will get a "more personalized" Siri later this year, with Google Gemini as the underlying AI model. Why the new collaboration could make Alphabet the AI leader Google Gemini is already gaining a lot of artificial intelligence ground. The chatbot has more than 650 million monthly users right now, up from 450 million about six months ago. The company's AI models are also powering Google Search, which Alphabet says has 2 billion monthly queries via its AI Mode. Gemini is already available on hundreds of Android phone models and will be available to even more as new models launch in the coming years. Android has a worldwide installed base of billions of devices, so there's a lot of opportunity for more people to start using Gemini as their primary AI agent. But Apple's iOS user base is also large, with more than 1 billion devices worldwide. The combination of Gemini soon becoming the underlying AI model for Android and iOS devices will make it much easier for the company to potentially encroach on ChatGPT's current dominance. OpenAI's chatbot has about 900 million weekly active users, so there's certainly a lot of ground to make up. But if mobile users from both tech giants have Gemini as their default AI model on their devices, there may be little need to use another AI chatbot. What Alphabet investors should look for This new Apple-Alphabet collaboration is still fresh, so it'll be interesting to see how it plays out for both companies. For Alphabet, especially, investors should keep an eye on how this could potentially boost Gemini subscriptions and cloud computing revenue. The joint announcements from the companies say that Apple's foundation AI models will be based on Gemini and use Google's cloud technology. The Financial Times reports that the collaboration between the two companies is structured as a cloud computing agreement, with the potential for Alphabet to receive billions of dollars over several years. That could potentially help lift Alphabet's cloud revenue, which was already up an impressive 34% in the third quarter to more than $15 billion. What is clear now, though, is that Gemini is quickly becoming a leader in AI. After a couple of short years of artificial intelligence looking like a threat to Alphabet, it now looks like one of the company's core strengths.