"Big Banks" JP Morgan: Apple and Google Gemini Reach Cooperation to Boost AI Upgrade

JP Morgan published a research report, maintaining an "Overweight" rating on Apple (AAPL.US), believing that the multi-year cooperation agreement reached with Google, a subsidiary of Alphabet (GOOGL.US), will help Apple accelerate its AI development. According to the agreement, Google's Gemini AI model will be integrated into Apple products, becoming the core of its foundational model, supporting intelligent features (Apple Intelligence) and applications, including an upgraded Siri. This technology will rely entirely on on-device compute and Apple Private Cloud for underlying computing capabilities.

JP Morgan pointed out that this cooperation aligns with market expectations and boosts market confidence. Previous media reports mentioned that Apple might pay about $1 billion annually for the rights to use Google's Gemini large language model (LLM). Although this announcement did not specify the exact costs, the multi-year cooperation indeed provides significant support for Apple's intelligent roadmap. JP Morgan believes that the collaboration with Google will help Apple launch a series of upgraded AI features, including an enhanced Siri, as scheduled in 2026.

Additionally, JP Morgan emphasized that Apple focuses on maintaining reasonable capital intensity while advancing its AI roadmap, avoiding large-scale expansion of computing resources to overcome technological bottlenecks. This strategy will contribute to its long-term stable development