Key takeaways Apple is finalizing a deal to pay Google approximately $1 billion annually for access to its advanced Gemini AI model to power Siri's long-awaited upgrade. The 1.2 trillion parameter Gem...
Apple is preparing to pay Google roughly $1 billion per year to integrate an advanced artificial intelligence model into Siri, marking a significant shift in the iPhone maker's AI strategy as it races to catch up with competitors.
Following an extensive evaluation period, the two Silicon Valley giants are now finalizing an agreement that would give Apple access to a custom version of Google's Gemini AI model featuring 1.2 trillion parameters, according to people with knowledge of the matter who spoke to Bloomberg.
The deal represents one of the most significant AI partnerships in the tech industry, though both companies have declined to comment publicly on the arrangement.
The partnership comes after Apple struggled to deliver on promises made at its Worldwide Developers Conference in 2024, where the company unveiled ambitious plans for an AI-powered Siri overhaul.
Those features were originally slated for release in 2024 but were delayed until spring 2026 due to technical deficiencies that required Apple to fundamentally rebuild Siri's underlying architecture.
During Apple's most recent earnings call, Chief Executive Officer Tim Cook confirmed progress on the revamped assistant.
"We're making good progress on it, and as we've shared, we expect to release it next year," Cook said during his opening remarks. He also indicated that Siri could eventually support additional chatbot options beyond the current ChatGPT integration.
The upcoming Siri upgrade, internally codenamed "Linwood," is part of a broader initiative called "Glenwood," led by Vision Pro creator Mike Rockwell and software engineering chief Craig Federighi.
Apple reportedly evaluated AI models from multiple providers, including OpenAI's ChatGPT and Anthropic's Claude, before ultimately selecting Google's Gemini earlier this year. Sources indicated that Anthropic's fees were deemed too high, contributing to Apple's decision to partner with Google.
Google's 1.2 trillion parameter model represents a substantial leap from the 150 billion parameter system currently powering the cloud-based version of Apple Intelligence.
Under the arrangement, Gemini will handle Siri's summarizer and planner functions—the components that help the voice assistant synthesize information and decide how to execute complex, multi-step tasks.
However, some Siri features will continue to rely on Apple's in-house models.
Critically, Google's AI model will run on Apple's own Private Cloud Compute servers, ensuring that user data remains isolated from Google's infrastructure.
This architecture means Google will not have access to Apple user data or the ability to use Siri queries to enhance its own services—a key privacy consideration for Apple, which has built its brand reputation on protecting customer information.
Despite the substantial investment, Apple views the Google partnership as an interim measure rather than a permanent solution.
The company continues to develop its own large-scale AI models and hopes to eventually replace Gemini with proprietary technology.
Apple's models team is already working on a 1 trillion parameter cloud-based model that could be ready for consumer applications as soon as 2026, according to sources familiar with the development.
The move marks an acknowledgment that Apple has fallen behind in the AI race and is now willing to rely on external technology to remain competitive.
Other major companies, including Snap, are also building AI features using Google's Vertex AI platform, demonstrating Gemini's growing adoption across the industry.
The $1 billion annual payment to Google represents a reversal of the companies' most significant financial relationship.
Google currently pays Apple approximately $20 billion per year to remain the default search engine in Safari. A federal ruling in September 2025 allowed Google to maintain these payments to distributors despite antitrust concerns.
Unlike the Safari arrangement, the Gemini integration will operate entirely behind the scenes without revealing Google's branding to users.
Neither company is expected to publicly acknowledge the deal, potentially to avoid additional regulatory scrutiny as antitrust authorities continue examining Big Tech collaborations.
For China, where Google services are banned, Apple plans a different approach.
The localized version of the Siri overhaul will use in-house models combined with a content filter developed by Alibaba Group Holding to comply with Chinese government requirements.
Apple has also explored potential partnerships with Baidu for AI offerings in the country.
The revamped Siri is scheduled to debut in spring 2026 as part of iOS 26.4, though plans could still evolve given the months remaining before launch.
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