Alphabet Valuation Tops $4 Trillion as Apple Adopts Gemini for Siri

2026-01-13 companies

Cupertino, Monday, 12 January 2026.
Apple chose Google’s Gemini to power Siri, citing it as the “most capable foundation,” a strategic move that propelled Alphabet’s market value beyond the historic $4 trillion mark.

A Historic Market Shift

On Monday, January 12, 2026, the financial markets delivered a resounding verdict on the deepening alliance between Silicon Valley’s two most dominant forces. Alphabet Inc. (GOOGL) saw its market valuation briefly surpass the $4 trillion threshold [1][2], a milestone driven by the confirmation of a multi-year partnership with Apple Inc. (AAPL) to integrate Google’s Gemini models into the iPhone maker’s ecosystem [1][4]. This surge reflects broader investor optimism regarding Alphabet’s artificial intelligence strategy, with the company’s stock climbing 65% over the past year [1]. Notably, this valuation achievement cements a shifting dynamic in the tech hierarchy; just days earlier, on January 7, Google surpassed Apple in market capitalization for the first time since 2019 [2].

The “Most Capable” Foundation

The agreement, finalized today, designates Google’s Gemini models and cloud technology as the infrastructure for the next generation of Apple Foundation Models [4][5]. In a joint statement, Apple explicitly cited that “after careful evaluation,” it determined Google’s technology provided the “most capable foundation” for its needs [1][4]. This decision marks a critical pivot for Apple, which has faced challenges in the generative AI race, including delays to its Siri upgrades and a lukewarm reception to earlier tools [1]. Despite leveraging Google’s cloud capabilities, Apple emphasized that its Apple Intelligence features will continue to run on-device and via Private Cloud Compute to uphold its privacy standards [4].

Revamping Siri: Timelines and Technology

The immediate focus of this collaboration is a significantly revamped version of Siri, which is slated to roll out later in 2026 [1][2]. While Apple has not confirmed a specific release date, industry reports suggest the next-generation Siri could arrive with iOS 26.4, potentially launching as early as March or April [8]. Technically, the upgrade is expected to be substantial; reports indicate Apple intends to utilize a 1.2 trillion parameter AI model to power Siri’s new capabilities, which include deeper on-screen awareness and improved context understanding [5][8]. This strategic reset follows a period of internal reorganization at Apple, marked by the appointment of Amar Subramanya as the new VP of AI in December 2025, succeeding John Giannandrea [1][7].

Strategic Implications and Competitive Landscape

This partnership significantly alters the competitive terrain for OpenAI, which had previously secured early integration with Apple’s operating systems. Market analysts note that Apple’s adoption of Gemini for its core intelligence layer shifts OpenAI into a “supporting role,” relegating ChatGPT to handling complex, opt-in queries rather than serving as the default assistant [1]. Financially, the deal is expected to be lucrative; while official terms remain undisclosed [5], reports from late 2025 indicated Apple planned to pay approximately $1 billion annually for access to Google’s AI infrastructure [2][6]. This agreement deepens an already profitable relationship, adding to the search engine partnership that generates tens of billions in annual revenue for Apple [1].

Sources

Artificial Intelligence Strategic Partnership