Alphabet Declines to Discuss Google-Apple AI Partnership During Earnings Call

During Alphabet's fourth-quarter earnings call on Wednesday, executives refrained from discussing the company's artificial intelligence (AI) partnership with Apple. When an analyst inquired about AI collaborations, including the one with Apple to enhance Siri, the question was notably ignored. This silence suggests Alphabet's current unwillingness to disclose how this partnership may influence its core AI-focused business.

Historically, the Google-Apple relationship has been mutually beneficial. For instance, Google's search partnership involved paying Apple $20 billion to be the default search engine on Apple devices, granting Google access to Apple's extensive customer base. Recent reports indicate that the new AI deal is valued at approximately $1 billion per year. However, the immediate benefits for Google are less apparent compared to the search agreement, as AI-driven advertising models are still experimental.

The Apple Siri deal received minimal attention during the earnings call. CEO Sundar Pichai briefly mentioned that he was pleased that Apple had chosen Google as its "preferred cloud provider" and that they would be assisting in developing "the next generation of Apple foundation models based on Gemini technology." Chief Business Officer Philipp Schindler echoed this sentiment, using identical wording when referencing Apple.

The lack of detailed discussion on the partnership during the earnings call leaves questions about its potential impact on Alphabet's AI initiatives unanswered.