Google and Apple have confirmed a multi‑year partnership under which Apple will rely on Google’s Gemini artificial intelligence models and cloud infrastructure to power the next generation of its AI features — notably a revamped Siri voice assistant and Apple Intelligence system slated to roll out later in 2026.

The announcement marks a significant collaboration between two longtime rivals in consumer technology. According to the joint statement, Apple selected Google’s AI after extensive evaluation, citing Gemini’s performance as the most capable foundation for its future Apple Foundation Models.

Under the agreement, Apple will integrate Gemini models into its internal AI ecosystem — including the long‑anticipated Siri upgrade, which has faced delays in recent years amid challenges in expanding its capabilities. Apple says that despite using Google’s models for core intelligence, key AI features will continue to run on Apple devices and through the company’s Private Cloud Compute platform, maintaining the firm’s strong privacy safeguards.

Multiple outlets confirm that the deal will see Google’s technology underpinning Apple’s AI innovation, but it does not involve sending raw user queries back to Google’s systems. The Verge notes that while Gemini will assist models and features, Apple retains control over on‑device processing and user privacy.

Market reaction was swift: news of the partnership contributed to Alphabet briefly crossing a $4 trillion market valuation, as investor confidence in AI technologies continues to buoy major tech stocks. The collaboration is seen as a validation of Google’s rapid progress with Gemini models — a family of AI systems that have been widely deployed across Google services and rated highly against competitor benchmarks.

The deal also reflects a strategic shift for Apple’s AI roadmap, which has historically focused on in‑house foundation models and selective integrations with third‑party systems like ChatGPT. By choosing Google’s infrastructure, Apple aims to accelerate innovation and close the gap in features such as personalised voice interaction, context‑aware responses and deeper integration with applications.

Experts tell reporters this collaboration could influence the broader AI ecosystem — positioning Gemini as a core engine not just for Google’s own products but also across rival platforms. Meanwhile, consumers can expect to see the first fruits of the partnership as Apple begins rolling out AI‑enhanced Siri features throughout 2026, with updates likely highlighted at Apple’s annual developer conference.

GM

Key Takeaways

• Tech-related sectors have dramatically outperformed the broader market since ChatGPT’s debut, driven by an AI-led investment boom.
• Nvidia, Broadcom, and other semiconductor-linked firms have seen extraordinary returns, reflecting soaring demand for AI infrastructure.

The launch of ChatGPT in late 2022 set off one of the most intense technology investment cycles in decades. Investors shifted capital toward companies and sectors positioned to benefit from AI infrastructure, cloud computing, and digital services.

This visualization highlights how each major U.S. equity sector performed from ChatGPT’s debut on November 30, 2022. Nvidia, for instance, climbed over 1,000% as demand for its AI-focused chips skyrocketed.

The data for this visualization comes from Deutsche Bank.

The AI Boom Rewired Market Leadership

Communication Services led all sectors with a 185% return, powered by Meta’s nearly fivefold increase. Information Technology followed at 157%, boosted by chipmakers and cloud providers essential to AI development.

Consumer Discretionary also outperformed, helped by digital-first platforms benefiting indirectly from AI-enabled efficiency gains. Together, these results show how the AI wave extended beyond semiconductors to reshape several adjacent industries.

Nvidia and Broadcom Stand Out as Market Outliers

No companies gained more from the AI surge than semiconductor leaders.

Nvidia returned roughly 1,020%, the single largest increase among major U.S. firms. Broadcom rose over 700%, reflecting its dominance in custom AI accelerators and networking hardware. Western Digital and Meta also delivered exceptional returns, nearing or exceeding 500%.

Traditional Defensive Sectors Lagged Behind

While tech surged, defensive and rate-sensitive sectors grew at a much slower pace.

Utilities returned 42%, healthcare 23%, and consumer staples 20%. Materials hovered near the bottom due to higher interest rates and slower industrial demand. Energy posted just 9%, reflecting weaker commodity dynamics. Meanwhile, the S&P 500 returned 80% over the same period.

Saurce: visualcapitalist

 Artificial intelligence adoption surges worldwide, with the Middle East poised to add over $232 billion to GDP by 2035 through focused strategies on skills and infrastructure. Organisations move from experimentation to execution, and, according to Alteryx, these are the five key predictions for how AI will mature in 2026. Leaders can expect a pivot toward measurable results over flashy overhauls.

Precision automation replaces big agents

Enterprise dreams of all-purpose AI agents fade as reality sets in. MIT research reveals 95% of broad AI rollouts delivered no real value, prompting a course correction. In 2026, focus sharpens on narrow, domain-specific automation for tasks such as finance, procurement, and support.

Targeted agents integrate into existing systems, yielding quicker returns than wholesale rebuilds. This pragmatic turn prioritises defensible impact, letting companies automate pain points without upending operations.

Business units take AI reins

IT departments once dominated AI budgets, but business leaders are now stepping forward. CEOs empower CFOs, sales heads and operations managers to pinpoint problems and deploy solutions directly. AI spending follows suit, flowing to teams closest to revenue and results.

Regional surveys back the shift, with 69% of Middle East firms planning higher AI outlays next year. Confidence grows when those who grasp daily challenges drive adoption, ensuring tools align with operational realities.

Data officers embrace pragmatism

Chief Data and Analytics Officers redefine their mandate. Gone is the push for perfect data ecosystems; 2026 demands progress with the resources available. Leaders prioritise rapid insights over flawless preparation, shifting from “fix first” to “deliver now.”

This evolution accelerates testing and scaling, helping business units unlock value without endless cleanup. Pragmatic CDAOs bridge data gaps to fuel decisions, proving outcomes matter more than architecture.

Mission-driven squads lead the charge

Large AI teams give way to compact, specialised units tackling high-impact cases. These squads blend business experts, data pros and engineers on agentic and composite AI projects tied to core needs.

Alteryx data shows that 9 in 10 Middle East respondents credit AI with transforming their work last year, while 94% of global analysts shape strategy. UAE initiatives, such as the 1 Million AI Talents programme, build talent pools for these agile groups, enabling swift execution.

Execution trumps experimentation

AI enters a results-oriented phase, rewarding firms that solve tangible issues and scale successes. Regional momentum, bolstered by investment and skills programs, fosters confident adoption. Middle East businesses lead with a practical focus, turning ambition into sustained advantage.

The year ahead favours precision over promise. Empowered units, realistic data strategies and focused teams position organisations to capture AI’s full potential amid accelerating global uptake.

Story by Gulf News