Alphabet dodges investor question on Google-Apple AI deal during earnings call

Google parent company Alphabet’s latest earning call offered a rare moment of silence on one of the biggest AI partnerships in the tech industry. During the company’s fourth-quarter investor call on Wednesday, executives skipped over a direct question about Google’s reported AI collaboration with Apple.

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An analyst had asked how Google is thinking about AI partnership, specifically in reference to Apple’s plans to use Google’s AI technology to enhance Siri. It was not answered, standing out in the call otherwise focused heavily on artificial intelligence and long-term growth. While the company did not address the statement, the choice of not answering itself showed how sensitive the topic is.

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For the unversed, Google and Apple have been sharing a financial relationship for years. Recent court filings in the US Department of Justice’s antitrust case against Google have shown that the search giant pays Apple around $20 billion annually to remain the default search engine on iPhones and other Apple devices. In return, the company gets access to one of the world’s largest consumer ecosystems, with Apple reporting a global installed base of 2.5 billion active devices last quarter.

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The new AI focused partnership, however, appears to be complicated. Industry reports suggest Apple may be paying roughly $1 billion a year to tap Google’s AI capabilities to power future Siri. Unlike search, where advertising revenue is immediate and well established, AI-driven interfaces do not yet offer a clear or proven monetisation path.

Even after investor interest, the Apple partnership received only brief and carefully worded mentions during the earnings call. CEO Sundar Pichai said Google was pleased to be Apple’s preferred cloud partner and noted ongoing work on next-generation Apple foundation models built on Gemini technology. Even Alphabet’s chief business officer said the same thing.

For now, how Google’s AI collaboration with Apple will translate into revenue or strategic advantage remains unclear.

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Ashish Singh

Ashish Singh is the Chief Copy Editor at Digit. He's been wrangling tech jargon since 2020 (Times Internet, Jagran English '22). When not policing commas, he's likely fueling his gadget habit with coffee, strategising his next virtual race, or plotting a road trip to test the latest in-car tech. He speaks fluent Geek. View Full Profile