Apple Bets on Google's Gemini for Siri Revamp as Alphabet Hits $4T Valuation

Apple has entered a multi-year agreement with Google to power Siri's AI capabilities using Gemini models and Google Cloud infrastructure starting in 2026. The deal, described by Apple as leveraging Google's "most capable foundation" for AI, represents a significant strategic shift for the iPhone maker, which historically developed core technologies in-house. Financial terms remain undisclosed, but industry analysts estimate the agreement could generate $3-5 billion annually for Google given Siri's 1.5 billion active devices.

The announcement fueled Alphabet's market valuation to $4 trillion during intraday trading on January 12, making it the fourth Big Tech company to reach this milestone after a 6% stock surge over the past month. Alphabet's growth is largely attributed to its AI advancements, with Gemini outperforming expectations in enterprise adoption. According to regulatory filings, Google Cloud revenue increased 28% year-over-year in Q4 2025, with AI services accounting for 40% of new contracts.

Concurrently, Nvidia and Eli Lilly unveiled a $1 billion joint investment to establish an AI drug discovery laboratory in Silicon Valley. The five-year initiative aims to accelerate pharmaceutical R&D using generative AI for molecular simulation, targeting a 50% reduction in drug development timelines. This partnership builds on Nvidia's expanding healthcare portfolio, which already processes over 90% of AI-powered medical imaging data globally.

Market data reveals shifting dynamics in consumer technology. Global smartphone shipments grew 2% year-over-year in 2025 to 1.3 billion units, with Apple capturing 20% market share and 10% shipment growth according to Counterpoint Research. Samsung followed with 19% share amid intensifying competition in premium devices, where AI features now influence 70% of purchasing decisions above $800 according to Canalys.

Regulatory pressures continue shaping AI deployment strategies. Meta confirmed shutting down nearly 550,000 accounts in Australia (330,639 on Instagram, 173,497 on Facebook) to comply with the country's under-16 social media ban. Simultaneously, Meta exempted Italy from its WhatsApp ban on rival AI chatbots following an antitrust order from Italy's AGCM authority. The company faces potential fines up to €20 million for non-compliance with the Digital Markets Act in the EU.

In healthcare AI, Anthropic launched Claude for Healthcare with HIPAA-compliant tools for medical providers, building on its life sciences platform. The system processes medical records at 98% accuracy according to validation studies, though Google faced scrutiny after temporarily disabling AI Overviews for liver health queries due to inaccuracies.

Investment activity remains robust with BitGo targeting a $1.96 billion valuation in its NYSE IPO, selling 11.8 million shares at $15-17 each. The crypto custody firm reported $201 million in 2025 revenue, up 140% from 2024. Meanwhile, China's memory chip maker CXMT pursues a $4.2 billion IPO that would rank among the largest semiconductor debuts this decade, despite US export restrictions.

These developments occur against tightening regulatory scrutiny worldwide. Britain's Ofcom opened an investigation into X's Grok AI over deepfake content, threatening fines or bans, while California faces mounting opposition to wealth tax proposals from tech leaders including Peter Thiel's $3 million donation to counter the measure.