Overview
- Apple announced at WWDC, held June 8–9, that its next‑generation Siri and Apple Intelligence will be powered by Google’s Gemini rather than wholly in‑house foundation models.
- The company will deliver a standalone Siri app with more conversational and visual intelligence, offer many features for free, and impose daily limits on higher‑capacity functions such as image generation.
- Apple said the new models will run both on‑device and through a Private Cloud Compute layer to protect user privacy while reducing the need to build hyperscaler‑scale infrastructure.
- Sell‑side analysts including Wedbush, TD Cowen, Maxim and Bernstein raised price targets and argued AI could add roughly $75–$100 of long‑term value per share even as the stock dipped after WWDC when some investor expectations were unmet.
- The announcement follows earlier delays and a roughly $250 million settlement tied to missed Apple Intelligence promises and leaves investors watching beta timelines, user uptake and whether reliance on external compute will raise costs or slow feature rollout.