Apple is reportedly closing in on a deal to pay Google about $1 billion each year so its customized version of the Gemini AI model can power the next generation of Siri. This move not only signals a major shift in Apple’s approach to AI — it also deepens the ties between two longtime rivals in the tech ecosystem. TechCrunch+2Bloomberg+2
Why This Deal Matters
- The model from Google being used by Apple reportedly features 1.2 trillion parameters, which dwarfs Apple’s current in-house model of about 150 billion.
- Apple typically builds its own tech, but this partnership shows how urgent it views the AI gap.
- A $1 billion annual deal emphasizes scale and commitment — this is no minor licensing agreement.
What Apple Gets, and What Google Wins
For Apple:
- Access to state-of-the-art large-language-model tech via Gemini.
- Potential leap in Siri’s capabilities: better context-understanding, planning tasks, summarisation.
- A stop-gap solution while Apple develops its own models.
For Google:
- A massive, high-value client that validates Gemini’s enterprise value.
- Possible long-term data, deployment, or usage advantages (depending on configuration).
- Strengthening Gemini’s presence in the AI model marketplace.
Strategic Shifts and Risks
- Strategy shift: Apple is signalling it can’t wait any longer — it is open to external AI partnerships rather than relying solely on internal R&D.
- Risk: Integration – powering Siri with Gemini must be done while maintaining Apple’s brand promises around privacy, on-device processing, and user data protection.
- Competitive context: This deal puts pressure on other AI model providers and device makers such as Microsoft, OpenAI, and Amazon’s Alexa.
What to Watch Next
- Will Apple announce exactly how Siri will change — e.g., features, model switch-over, timing (rumours point to spring 2026). 9to5Mac+1
- How will Apple balance Gemini integration with its own model roadmap? A “temporary” use of Google tech could complicate timelines.
- How will regulators or antitrust bodies react to this deep partnership between Apple and Google?
- Will this shift affect Apple’s user experience, ecosystem advantages, or developer platform?
Conclusion
The “Apple Google $1B deal” is shaping up to be a landmark moment in consumer-AI history. When two titans of tech collaborate at this scale, it reflects how AI is no longer a fringe feature — it’s foundational. For users, this means Siri may finally become substantially better. For the industry, it signals that the race for universal AI assistants is entering a new phase.
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