In January 2026, Apple announced a significant partnership with Google, integrating Google’s Gemini AI into its next-generation Apple Foundation Models. This collaboration aims to enhance Siri with more personalized, AI-driven features while keeping Apple’s data processing secure within its Private Cloud Compute framework. The deal positions Gemini at the forefront of Apple’s AI strategy, transforming a rival into a key customer for Google’s capabilities. This partnership is expected to bolster Alphabet’s revenue stream by enhancing cloud services and AI-related advertising. However, it also introduces risks tied to regulatory scrutiny and Apple’s future bargaining power. Analysts estimate Alphabet’s stock is currently undervalued, suggesting a potential bargain for investors. With diverse perspectives on Alphabet’s fair value and ongoing investments in AI, it’s essential for investors to assess the sustainability of Alphabet’s performance. For further insights, explore our in-depth Alphabet research report that simplifies financial analysis and investment decisions.
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