Apple and Alphabet have agreed to a multiyear partnership under which Apple will integrate Alphabet’s Gemini 3 large-language model into its Siri voice assistant and broader Apple Intelligence features beginning in spring 2026. The deal, reportedly worth several billion dollars over its initial term, grants Apple access to Gemini’s top–ranked capabilities—Gemini 3 outperformed competing models in six of seven evaluated categories on crowdsourced platform LMArena. With over 2.4 billion active Apple devices worldwide, the tie-up instantly embeds Alphabet’s AI technology into Apple’s massive hardware base, marking a strategic vote of confidence in Alphabet’s AI leadership and creating a new recurring revenue stream for Alphabet’s cloud AI services.

Billionaire Philippe Laffont, founder of Coatue Management—which oversees $40.8 billion in assets—has been steadily adding to his stake in Alphabet during the fourth quarter of 2025. According to the firm’s latest 13F filing, Coatue increased its position in Alphabet by 18% quarter-over-quarter, making Alphabet one of the top three names in the fund alongside Broadcom and Microsoft. Laffont’s buying rationale centers on Alphabet’s robust competitive advantages in AI, a pristine balance sheet with cash and short-term investments exceeding $100 billion, and an attractive valuation—Alphabet currently trades at roughly 22 times forward earnings versus a five-year average of 24x—underscoring investor confidence in Alphabet’s long-term AI growth runway.