Alphabet Upsizes to $84.75B Equity Raise, Powers Siri with Google AI
At WWDC, Apple announced that its upgraded Siri and AI apps will use Alphabet’s Gemini-based models partly trained on Google TPUs and run on Google Cloud with NVIDIA GPUs. Separately, Alphabet expanded its AI compute capabilities by upsizing a planned equity raise to $84.75 billion for global infrastructure investments.
1. Apple Integrates Google AI into Siri
During its latest developer conference, Apple revealed that delayed Siri enhancements will leverage Alphabet’s Gemini-derived models, partly trained on Google’s TPUs. Simple AI tasks will run locally on iPhones while more demanding requests are processed in Google data centers using NVIDIA GPUs, with no user data stored or used for Google’s own AI training.
2. $84.75 B Equity Raise for AI Infrastructure
Alphabet increased its planned equity capital raise from $80 billion to $84.75 billion to fund expansion of AI infrastructure and global compute capacity. The proceeds will be directed toward upgrading data centers, scaling TPU availability and supporting development of next-generation AI models.
3. Strategic Implications and Risks
Relying on Google’s cloud and AI tools could give Alphabet greater leverage in its search agreement and future negotiations with Apple. This deeper collaboration also raises fresh regulatory and privacy questions, as well as the risk of costly migration if Apple seeks alternative AI providers.
