AI Daily: Google could get important AI endorsement from Apple

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly:

SECONDARY SHARE SALE: OpenAI is increasing the size of its secondary share sale by over $4B, giving eligible current and former employees the opportunity to sell roughly $10.3B in stock, up from the $6 billion it was initially targeting, a person familiar with the matter told CNBC‘s MacKenzie Sigalos. The sale will be at a $500B valuation, in line with expectations, the report added.

AI ENDORSEMENT: BofA notes that per Bloomberg, Apple (AAPL) is developing a new AI-powered web search feature for Siri, internally dubbed “World Knowledge Answers,” with plans to launch in Spring 2026. The article suggests that the tool might be powered by a customized version of Google’s (GOOGL) Gemini model. This feature is expected to enhance Siri’s capabilities by delivering richer, more conversational responses, moving the assistant closer to ChatGPT like functionality. The new capability is also expected to extend beyond Siri, with possible integration into Safari and Spotlight.

BofA believes an AI deal would be strong endorsement of Google’s improving AI capabilities. The deal would also demonstrate Google’s ability to modularize its models for third-party use cases, whether embedded in search, messaging, or system-level assistants. If embedded into Safari and Spotlight, Gemini would further entrench Google within the iOS ecosystem, reinforcing company’s competitiveness and distribution moat. The firm has a Buy rating on Alphabet with a price target of $252.

SLOWING AI ACCELERATOR GROWTH: Seaport Research analyst Jay Goldberg downgraded AMD (AMD) to Neutral from Buy with no price target. Recent supply chain checks point to AMD seeing slowing growth in its AI accelerator business, the analyst tells investors. The firm, which is lowering its estimates, sees such a slowdown making it “increasingly challenging” for AMD to meet “over-high” expectations this year, the analyst added.