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U.S-based tech titan Alphabet, the parent company of Google, passed the $4 trillion threshold in market capitalization for the first time on Monday, becoming the fourth company globally to reach that level as its share price climbed to a record high after Apple announced a new AI partnership with Google.
Alphabet’s shares rose 1% to $331.86 by the close of trading in New York on Tuesday, placing Alphabet alongside Nvidia, Microsoft and Apple in the small group of companies to reach that valuation level.
Under the multi-year agreement, the next generation of Apple Foundation Models will be built on Google’s Gemini models and cloud infrastructure. In a joint statement, the companies said, "These models will help power future Apple Intelligence features, including a more personalized Siri coming this year."
Apple Foundation Models are large-scale artificial intelligence systems that underpin features such as voice assistants, text generation tools and on-device intelligence.
Gemini is Google’s family of advanced AI models designed to handle tasks ranging from language processing to image and data analysis.
Apple said its artificial intelligence platform will continue to operate on Apple devices and through its private cloud computing systems, while maintaining its "industry-leading privacy standards." The company did not disclose the financial terms of the agreement.
The company added that core processing will remain within its own ecosystem, signaling that user data handling and on-device intelligence will stay under Apple’s direct control.
The new agreement has raised questions about Apple’s existing collaboration with OpenAI, announced in July 2024, which integrated ChatGPT into Apple products. It remains unclear whether that arrangement will continue or how the two partnerships will be managed within Apple’s ecosystem.
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