Apple is in advanced talks with Google to license Google’s large-scale AI model Gemini to power the next-generation Siri. According to reports, the deal is valued at about US$1 billion per year.
The model in question reportedly has around 1.2 trillion parameters, significantly larger than Apple’s current in-house cloud model (≈150 billion parameters).
Under the deal, Apple will run a custom version of Gemini inside its own Private Cloud Compute infrastructure, preserving its privacy stance while leveraging Google’s AI muscle.
Why is this happening?
Apple’s AI urgency
- Siri has been seen as lagging behind competitors such as Google Assistant and Amazon Alexa in handling complex, multi-step commands and integrating across apps.
- Apple’s internal AI efforts have faced delays, so the company appears to be treating the Gemini deal as a short-term fix while it continues building its own large-scale models.
Strategic partnership
- The deal deepens the interdependence between Apple and Google — Apple already has a multi-billion dollar search deal with Google, and now it may rely on Google for core AI capabilities.
- For Google, licensing Gemini to Apple is a major commercial win and further reinforcement of its model-leadership position.
Key details of the deal
- Annual value: ~US$1 billion. Moneycontrol
- Model size: ~1.2 trillion parameters custom-built for Apple’s needs.
- Deployment: Model to run on Apple’s servers (Private Cloud Compute) — data stays within Apple’s systems.
- Scope: Gemini will handle certain advanced functions of Siri (e.g., summarisation, planning) while some features remain powered by Apple’s own models.
- Timing: The new Siri is expected around spring 2026 (for iOS 26.4 or similar) though rollout details may vary.
Implications of the Apple Google Gemini deal
For Apple
- Apple gets rapid access to a world-class AI model, potentially narrowing the gap with competitors in voice assistants and generative AI.
- However, relying on a third-party model raises questions about long-term autonomy — Apple still intends to build its own trillion-parameter model. 9to5Mac
- The cost (~US$1 billion annually) is material — Apple will expect significant value in return through improved Siri user experience and platform stickiness.
For Google
- Licensing Gemini to Apple not only boosts revenue but also cements Gemini’s status as a top-tier model for large enterprise use.
- It increases Google’s influence in the broader AI ecosystem beyond its own direct product lines.
For users
- Users may soon get a significantly smarter Siri that can handle more complex queries and cross-app tasks — a meaningful upgrade.
- Apple’s promise of privacy may be better preserved than if the model ran on Google’s infrastructure, since Apple will host it on its own servers.
- The changes may come in spring 2026, meaning users will need to wait for full rollout.
For the broader AI & tech ecosystem
- The deal signals how major tech companies are now treating large-scale AI models as strategic assets — licensing them has become part of ecosystem deals.
- It may influence how rival companies (e.g., Microsoft, Amazon, Meta) partner, integrate or develop their own models.
- From an India/regional viewpoint: this may accelerate expectations of more advanced AI features across global products (including Apple’s offerings in India).
Questions & risks
- While Apple will host the model, how will data flows be managed, and will Google truly have no access to user data? Apple asserts it will maintain control, but execution matters.
- Will Apple be able to transition from this deal to its own model quickly enough to avoid being locked into a long-term third-party dependency?
- How will the cost scale — if Apple pays US$1 billion now, will future years be more expensive?
- Will the improved Siri deliver meaningful improvement, or will it still lag if underlying ecosystem/integration issues persist?
- How will the partnership affect competitive dynamics (e.g., Android vs iOS, Google Assistant vs Siri) and regulatory scrutiny (especially around data, competition and AI model licensing)?
Final thoughts
The reported Apple Google Gemini deal marks a significant pivot in Apple’s AI strategy: a bold move to license one of the most advanced AI models in the world in order to quickly upgrade its voice assistant offering. While the deal offers fast-track access to capability, it also raises questions about autonomy, long-term strategy and execution. For users, it promises a more capable Siri; for Apple, it’s a high-stakes bet; for Google, a commercial and strategic win.
