In a recent commentary, Gene Munster, managing partner at Deepwater Asset Management, emphasized the strategic implications of Apple Inc.'s transition from utilizing OpenAI’s ChatGPT technology to integrating Alphabet Inc.'s Google Gemini for its Siri virtual assistant. Munster remarked on X that the likelihood of the revamped Siri achieving success has notably increased, commending Apple CEO Tim Cook for leveraging long-recognized limitations of Siri as an opportunity to stimulate growth across Apple's device and service offerings.
Munster pointed out that Apple's departure from reliance on GPT models and the broader OpenAI framework signals a marked shift towards a more deliberate and robust approach to evolving the company’s artificial intelligence foundation. He described GPT as a widely capable AI model; however, Apple appears to pursue more advanced solutions through Google’s Gemini, indicative of a distinct strategic course intended to elevate Apple's AI ambitions beyond existing capabilities.
Despite Munster's positive assessment, not all industry views align with the optimism. Elon Musk, CEO of Tesla Inc. and xAI, voiced reservations regarding the alliance, cautioning that the partnership could endow Google with excessive sway over the technology landscape, particularly considering its dominant roles in the Android operating system and the Chrome web browser. This raises questions about potential competitive dynamics and influence concentration in the technology sector.
The personnel landscape at Apple underscoring its AI efforts is also undergoing significant changes. John Giannandrea, who has spearheaded Apple’s AI initiatives since 2018, declared in December 2025 his intention to relinquish his leadership role and transition into an advisory capacity prior to retiring in 2026. His successor, Amar Subramanya, brings extensive AI expertise cultivated from executive roles at Microsoft Corp and Google, including contributions to the development of the Gemini Assistant.
Market analysts recognize the partnership with Google Gemini as a critical catalyst within Apple’s AI strategy. Dan Ives, a Wedbush analyst, recently characterized the collaboration as a paramount growth driver and suggested that Gemini might eventually serve as Apple's exclusive artificial intelligence partner, highlighting a deepening alignment between the two corporations in AI development.
This partnership development coincides with Alphabet's market capitalization surpassing Apple’s for the first time since 2019. Currently, Alphabet is valued at approximately $4.06 trillion compared with Apple's $3.84 trillion, reflecting significant shifts in market valuation among leading technology enterprises.
In stock market activity on Tuesday, Apple’s shares closed up by 0.31% at $261.05, experiencing a marginal decline to $260.85 during after-hours trading. Meanwhile, Alphabet’s Class A shares advanced by 1.24% in the regular session with a further 0.38% rise after-hours. Alphabet’s Class C shares appreciated by 1.11% during regular trading and an additional 0.47% after hours. These fluctuations underscore investor responsiveness to strategic initiatives and broader market positioning.
Investment tools such as the Benzinga Edge Stock Rankings indicate that Apple maintains a strong medium- and long-term outlook despite some short-term pressures impacting its share price, suggesting confidence in the company’s core strategies and growth prospects.