Alphabet Declines to Discuss Google-Apple AI Partnership on Earnings Call
Key Points
- Alphabet avoided answering an analyst's question about the Google-Apple AI partnership on its earnings call.
- Sundar Pichai and Philipp Schindler only confirmed Apple chose Google as its preferred cloud provider.
- The partnership will use Google's Gemini technology to develop next‑generation Apple foundation models.
- The historic search agreement still generates billions in revenue for both companies.
- Google is testing ads and shopping features within its AI Mode, but the AI deal's financial impact is unclear.
- Competitor Anthropic is challenging ad‑supported AI models with a high‑profile Super Bowl ad.
During Alphabet's fourth-quarter earnings call, executives sidestepped an analyst's question about the Google-Apple artificial‑intelligence deal that powers Siri. The company offered only a brief statement that Apple had chosen Google as its preferred cloud provider and would collaborate on next‑generation foundation models built on Gemini technology. The silence highlights Alphabet's reluctance to reveal how the partnership may affect its core AI‑focused business, even as the historic search agreement continues to generate billions in revenue for both firms.
Background
Google and Apple have long maintained a mutually beneficial relationship. A historic search partnership saw Google paying Apple billions to be the default search engine on iPhone devices, granting Google access to Apple's massive user base of billions of active devices. Recently, the two companies announced a new artificial‑intelligence collaboration in which Google’s Gemini technology will help develop the next generation of Apple foundation models, and Apple designated Google as its preferred cloud provider.
Earnings Call Interaction
During Alphabet's fourth‑quarter earnings call, an analyst asked how the company was thinking about AI partnerships such as the one with Apple that powers AI for Siri. Rather than answer, the question was ignored. Sundar Pichai, Alphabet’s chief executive, simply noted that he was pleased Apple had chosen Google as its preferred cloud provider and that the firms would work together on new foundation models based on Gemini. Chief Business Officer Philipp Schindler repeated the same wording when mentioning Apple.
The lack of substantive discussion signals that Alphabet is not yet ready to explain how the Siri deal will impact its core business, which is increasingly centered on artificial intelligence. While the search partnership generates clear financial benefits—reports indicate Google has paid Apple billions for default search placement—the AI agreement’s monetary payoff is less obvious.
Potential Implications
Industry observers note that the Siri partnership could eventually influence Google’s AI‑driven products, such as the experimental AI Mode in Search, where ads are being tested within chatbot‑style responses. Google is also experimenting with agentic shopping features like “Shop with AI Mode,” which aim to guide consumers to seamless checkout experiences. In contrast, competitor Anthropic is positioning itself against ad‑supported AI models, as highlighted by its upcoming Super Bowl advertisement that challenges the business models of OpenAI and Google.
Overall, the Apple Siri deal received minimal attention on the earnings call, underscoring Alphabet’s cautious approach to disclosing details about its evolving AI collaborations.