Apple Picks Google Over OpenAI to Power Siri's Next Chapter

After delays and false starts, Apple is betting on Google's Gemini models—not OpenAI's ChatGPT—to finally deliver the intelligent Siri upgrade it's been promising since 2024.

The joint statement landed Monday morning with careful corporate language: "After careful evaluation, Apple determined that Google's AI technology provides the most capable foundation for Apple Foundation Models." But the implications are anything but careful. This marks the first time since 2019 that Alphabet's market cap has surpassed Apple's, hitting $4 trillion on the news. The deal also relegates OpenAI—which Apple embraced with fanfare at WWDC 2024—to what one analyst calls "a more supporting role."

The shift represents a fundamental recalculation of the AI wars. Just eighteen months ago, Apple stood on stage touting ChatGPT integration as the future of iOS. Now Google's Gemini 3, launched in November 2025 and described internally at OpenAI as a "code red" competitor, will become the default intelligence layer across Apple's ecosystem. The deal, estimated at $1 billion annually according to CNBC reporting, mirrors the structure of Google's longstanding search default payments—suggesting this isn't a temporary arrangement.

Apple's path here reads like a series of compromises. The company's internal "Ajax" models, under development since at least 2023, couldn't deliver on time. The major Siri upgrade originally planned for 2025 was publicly delayed in March. Meanwhile, Google shipped Gemini 3 with capabilities that apparently convinced Apple to abandon its go-it-alone approach.

"I don't think Apple is giving up building its own foundation models," says Gene Munster, managing partner at Deepwater Asset Management and longtime Apple analyst. "Once they have collected enough data via the new Gemini-powered Siri, switching to Apple's own models is always an option."

That's the optimistic read. The pragmatic one: Apple needed something that worked now, and Google had it.

The technical implementation remains deliberately vague. Both companies confirm Gemini will run on Apple's Private Cloud Compute infrastructure—the privacy-preserving system Apple announced for handling AI queries that can't process on-device. Neither company has explained how exactly Google's models were ported to Apple Silicon server racks, or what privacy guarantees survive the translation.

OpenAI declined to comment, leaving unanswered how this affects ChatGPT's existing iOS integration. According to the announcement, ChatGPT will remain available for "complex queries" and image generation—corporate speak for "you can still use it if you really want to."

"This relegates OpenAI to a more supporting role, with ChatGPT remaining positioned for complex, opt-in queries rather than the default intelligence layer," notes Parth Talsania, CEO of Equisights Research.

The timing suggests calculation on both sides. Google gets its models into hundreds of millions of iPhones just as the company pushes to establish Gemini as the OpenAI alternative. Apple gets a working solution after its delays became embarrassing. Users get... well, that remains to be seen.

Apple's AI strategy has shifted from building everything in-house to assembling best-in-class components—even if that means enriching its search rival. The company that once prided itself on controlling every pixel now depends on Google for its most visible AI feature.

Siri queries will default to Gemini models starting later in 2026, with ChatGPT becoming opt-in. The deal structure mirrors Google's search payments, suggesting long-term commitment. Apple's Private Cloud Compute will host Gemini, though technical specifics remain undisclosed. OpenAI loses prime position on iPhone after less than two years since the original partnership. Alphabet's market cap surpassed Apple's for the first time since 2019 following the announcement.

The real test comes when users start talking to the new Siri. Will they notice the difference between Gemini and ChatGPT? Will Apple's privacy promises hold when the intelligence comes from Mountain View? And what happens when Apple's own models are finally ready?

For now, the company that revolutionized smartphones by putting the internet in your pocket is betting its AI future on the same company that already owns search.