Apple Reportedly Nears $1 Billion Annual Deal with Google for Gemini AI
Apple is finalizing a landmark agreement to pay Google approximately $1 billion annually to license its powerful Gemini AI model, according to a Bloomberg report. This partnership aims to power the long-awaited Siri overhaul that Apple promised at WWDC 2024 but has faced multiple delays.
Key Takeaways
- Apple to pay ~$1 billion/year for Google’s 1.2 trillion-parameter Gemini AI
- Gemini will handle Siri’s summarization and complex task planning
- Deal serves as interim solution until Apple’s own AI models mature
- User data protected through Apple’s Private Cloud Compute servers
From Evaluation to Agreement
Following extensive evaluation, Apple and Google are now finalizing the agreement. Apple had previously considered other third-party options, including Anthropic’s models, but financial arrangements didn’t materialize. The companies already have an established partnership through Google’s position as default search engine on Apple devices.
The Glenwood Project: Siri’s Major Upgrade
Internally codenamed “Glenwood,” the Siri revamp is being led by Vision Pro creator Mike Rockwell and software engineering chief Craig Federighi. The updated voice assistant is expected to launch with iOS 26.4, codenamed “Linwood.”
How Gemini Will Enhance Siri
The Gemini model will specifically handle Siri’s summarization and planner functions, helping the assistant synthesize information and execute complex tasks. Some Siri features will continue using Apple’s in-house models, with Google’s technology serving as a temporary solution until Apple develops sufficiently powerful AI capabilities.
Privacy protection: The Gemini model will run exclusively on Apple’s Private Cloud Compute servers, ensuring user data remains within Apple’s infrastructure and out of Google’s systems.
Behind-the-Scenes Partnership
Apple plans to treat Google as a behind-the-scenes technology supplier rather than promoting the partnership publicly. Notably, the agreement does not include integrating Gemini directly into Siri as a chatbot feature.
Currently, Siri routes complex queries to ChatGPT without offering alternative chatbot options. Discussions about incorporating Gemini as a chatbot in Siri nearly reached fruition in early 2024 but ultimately didn’t materialize.
Apple’s Long-term AI Strategy
With Gemini serving as a stopgap solution, Apple’s internal models team is developing a 1 trillion-parameter cloud-based AI model that could be ready for consumer applications by next year. Company executives believe their in-house model could eventually match the quality of Gemini’s custom version.
