Apple’s Next iPhone Might Use Google AI—And That’s a Big Deal

Alphabet, Google’s parent company, is making big waves in the stock market, and for good reason. Investors are buzzing over two major developments—rumors that Apple might integrate Google’s AI into future iPhones and a massive $2.5 billion cloud deal with Salesforce. These moves could change the game for Alphabet, and the excitement is already driving its stock higher.

Apple Might Use Google’s AI in iPhones—A Big Shift

Apple and Google have been rivals for years, but that rivalry might be turning into a partnership—at least when it comes to AI. Recent leaks from Apple’s iOS 18.4 beta suggest the company is considering integrating Google’s AI, Gemini, into its devices. If this happens, it would be a huge shift for Apple, which usually builds its own software instead of relying on competitors.

Why does this matter? Apple’s AI, including Siri, has struggled to keep up with competitors like ChatGPT and Google Assistant. Teaming up with Google could be a shortcut to bringing better AI features to iPhones without Apple having to start from scratch.

For Google, this is an even bigger win. It would mean that millions of iPhone users would be using Google’s AI, giving the company even more influence in the AI space. While nothing is official yet, just the possibility of this partnership is enough to have investors excited.

Google Lands a $2.5 Billion Cloud Deal with Salesforce

If the news about Apple wasn’t enough, Alphabet also landed a large contract with Salesforce for cloud computing. Salesforce has pledged to invest at least $2.5 billion in Google Cloud services over the following seven years, according to Bloomberg.

Google Cloud, which has been engaged in intense competition with Amazon and Microsoft in the cloud computing business, has benefited greatly from this agreement. Google fortifies its position in a field that is growing more and more significant for companies by collaborating with Salesforce.

Salesforce will benefit from the agreement by having access to Google’s robust cloud infrastructure, which will enhance its AI-powered products and customer management software. Both businesses benefit from it.

Why This Matters for Alphabet and Investors

These two developments show that Alphabet is making smart moves in two of the biggest tech trends—AI and cloud computing. If the Apple deal goes through, Google’s AI could become a key part of millions of iPhones. Meanwhile, the Salesforce deal helps Google Cloud gain ground against its biggest competitors.

Investors love seeing strategic plays like these, and that’s why Alphabet’s stock is climbing. If these partnerships become official, Alphabet could be in an even stronger position for the future.