Apple shares climbed after reports that the company is preparing an AI-powered web search tool tied to a major Siri overhaul, positioning the assistant as an “answer engine” and a rival to OpenAI and Perplexity. According to TipRanks, the internal project, called World Knowledge Answers, is slated to arrive in Siri next year and later expand to Safari and Spotlight.
Siri revamp and AI partnerships
TipRanks reports that the update is part of a long-delayed push to help Siri handle complex queries by using large language models to deliver richer responses, including text, photos, videos, and local information. Apple refers to the initiative as an “answer engine,” aiming to make Siri a viable alternative to ChatGPT or Google’s AI search.
To support the effort, Apple has reportedly struck a deal with Alphabet to test a Google Gemini model inside Siri. The company is also weighing other AI options such as Anthropic’s Claude, though Google has offered more favorable terms, TipRanks notes.
Market reaction and Google deal context
Stock gains and antitrust backdrop
The news lifted Apple stock to $238.47, marking its best one-day gain in nearly a month, as investors viewed the AI push as a potential growth catalyst beyond iPhone sales. TipRanks adds that a U.S. judge ruled Apple can maintain its deal to keep Google as the default search engine on Apple devices, with only minor changes. The arrangement, which generates roughly $20 billion a year for Apple, will continue, easing investor concerns.
Even with the continued Google partnership, Apple’s move to develop its own AI search tool suggests a strategy to reduce reliance on Google and pursue share in the growing generative AI market. TipRanks frames the initiative as an effort to close the gap with Microsoft and Google in AI.
On TipRanks, AAPL holds a Moderate Buy consensus rating based on 16 Buys, 11 Holds, and one Sell, with an average price target of $239.36 implying 0.37% upside potential from current levels. Year-to-date, AAPL shares are down nearly 4.4%, the outlet reports.
