Analysts highlight Alphabet’s potential default AI integration across Apple’s 2.5 billion devices as a key advantage in the AI race.
Jim Cramer suggested Google’s Gemini could dominate AI by becoming the default on Apple’s 2.5 billion devices, mirroring Google Search’s historical distribution lock-in. This arrangement remains unconfirmed but could replicate past market dominance strategies.
Alphabet currently pays Apple to be the default search engine in Safari, a model that could extend to AI. Berkshire Hathaway holds significant stakes in both companies, with $31 billion in Alphabet and $58 billion in Apple, reflecting confidence in their market positions.
Prediction markets give Google only a 5% chance of leading AI benchmarks by 2026, though a default deal with Apple could shift dynamics. Such a move may also attract antitrust scrutiny, echoing past regulatory challenges.