Apple admits defeat. Puts on Tim Cook, Calls on Sundar. 🚀

Original Reddit post

The author argues Apple's reported use of Google Gemini for Siri is a capitulation that makes Alphabet a long and Apple an avoid.

GOOGL — LONG The author claims Apple's reported $1B+ deal to use Google Gemini for Siri means Alphabet owns the AI stack for Android and iOS, creating a data moat. The iPhone 17 cycle is seen as a catalyst for Alphabet's upside. The author suggests long GOOGL/calls as a way to express this.

Alphabet (GOOGL) now effectively owns the AI stack for the entire mobile world—Android AND iOS. That's a data moat nobody can touch.

AAPL — AVOID The author claims Apple's reported use of Google Gemini is a capitulation because Apple cannot scale LLMs fast enough on-device. Paying a 'Gemini Tax' for complex Siri queries is expected to pressure Apple's Services margins. This calls Apple's technology leadership into question.

Apple’s Services margins are going to take a hit if they’re paying a "Gemini Tax" for every complex Siri query.