Why did Alphabet ignore questions about the Google-Apple AI deal?

Alphabet's silence suggests the company is not yet ready to discuss how the AI partnership with Apple will impact its core business.

What is the rumored cost of the new AI deal between Apple and Google?

The new AI deal between Apple and Google is rumored to cost Apple approximately $1 billion per year.

What did Alphabet's CEO say about the Apple AI partnership?

Alphabet's CEO stated he was pleased to be Apple's preferred cloud provider and would help develop next-generation Apple foundation models using Gemini technology.

Home / Technology / Google Dodges Apple AI Deal Questions

Google Dodges Apple AI Deal Questions

5 Feb

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Summary

Alphabet investor calls were unanswered regarding the Apple AI deal.
Google paid Apple $20 billion for default search engine status.
New Apple AI deal rumored to cost Apple $1 billion annually.

Alphabet investors' inquiries regarding Google's AI partnership with Apple were notably ignored during the company's fourth-quarter earnings call. This lack of response indicates Alphabet's unpreparedness to disclose how this significant collaboration will affect its AI-centric business model. The long-standing Google-Apple relationship has historically been lucrative, with Google paying Apple $20 billion to maintain its position as the default search engine on Apple devices.

The new AI deal with Apple is reportedly costing Apple approximately $1 billion annually. However, the direct benefits for Google are less immediately apparent compared to the search engine agreement. Google is currently experimenting with advertising within its AI-powered chatbot interface and exploring 'agentic shopping' features. Meanwhile, a competitor, Anthropic, is launching ads challenging the ad-supported AI business models of companies like Google and OpenAI.

During the call, Alphabet CEO Sundar Pichai expressed pleasure in being Apple's preferred cloud provider and highlighted assistance in developing next-generation Apple foundation models utilizing Gemini technology. The sentiment was echoed by Google's Chief Business Officer, Philipp Schindler, underscoring the strategic importance of this evolving alliance.