Apple needs to partner with Google in AI arms race, says Wedbush's Dan Ives
Speakers
Dan Ives
— Managing Director, Wedbush Securities
Summary
Dan Ives of Wedbush says the market was wrong to write off Google over AI and DOJ concerns, arguing Google is now in the AI driver's seat and that an Apple-Google partnership around Siri could be a watershed moment for consumer AI. He contends Apple needs Google/Gemini to fix its AI shortcomings, while Google would gain a massive iOS and iPhone installed base to monetize. The interview also addresses Elon Musk's concentration concerns and Ives's expectation of more Big Tech strategic partnerships and acquisitions.
- Dan Ives says AI fears about Google Search and the DOJ case proved overdone.
- He believes Google is in the AI driver's seat and that its AI/Gemini momentum is just beginning.
- He argues Apple needs a Google/Gemini-powered Siri as its AI watershed moment.
- The Apple-Google tie-up would let Google monetize iOS and iPhone users while helping Apple catch up in AI.
- Musk's concentration concerns are acknowledged but not seen as blocking the partnership.
- Ives expects a period of more Big Tech strategic partnerships and acquisitions.
Ideas
AI fears wrong; Google just beginning
Ives argues that the market was wrong to assume AI would destroy Google Search and that the DOJ would beat Google; Google won the DOJ case and AI/Gemini has instead strengthened its position, leaving Google in the driver's seat. He believes this is just the beginning for Google, especially because an Apple partnership would let it monetize a massive iOS/iPhone installed base.
Google-powered Siri is Apple's AI watershed
Ives says Apple's AI efforts have disappointed and that Apple needs Google/Gemini for the next Siri upgrade. He views a Google-powered Siri as the potential watershed moment for Apple and the consumer AI revolution, with both companies needing each other because Apple has the huge iOS/iPhone base and Google has the LLM/monetization opportunity; internal leadership changes also position Apple for this prove-it year.
