According to CNET, Apple is finalizing a deal with Google to create a custom Gemini AI model that will power the next version of Siri starting in spring 2026. The tech giant will reportedly pay Google $1 billion annually for this massive 1.2 trillion parameter model. Apple was apparently choosing between Google and AI competitor Anthropic, with the Anthropic option costing $1.5 billion per year. The custom Gemini will run on Apple’s private cloud servers while Apple’s own models handle personal data on devices. Interestingly, Apple doesn’t plan to highlight Google’s involvement in its marketing. Both Google and Apple declined to comment on the reports.
The AI reality check
Here’s the thing: this deal represents Apple’s admission that it’s fallen way behind in the AI race. Despite being one of the richest companies in the world, Apple hasn’t been able to develop competitive AI models. They’ve been slow to adopt the technology and are now turning to others to catch up. It’s basically an outsourcing move for their most important future technology.
And honestly, it makes sense when you think about Apple’s priorities. The company is obsessed with privacy, which conflicts with how most advanced AI systems work. Cloud-based AI requires massive data processing on servers, while Apple prefers local models that run on your device. But local models just can’t compete with the computational power of server farms. Training foundational AI models is incredibly expensive too – estimates put GPT-5’s training cost at over $1 billion.
google-apple-relationship-deepens”>The Google-Apple relationship deepens
This isn’t exactly new territory for these two tech giants. Google already pays Apple a staggering $20 billion annually to remain the default search engine on Apple devices. Now they’re adding another billion-dollar AI partnership on top of that. It’s becoming quite the symbiotic relationship, even as regulators question whether it’s anti-competitive.
So why not just buy an AI company? Apple CEO Tim Cook hasn’t ruled that out, but integration might be faster than acquisition. Partnering lets Apple skip the massive R&D costs and talent wars while still getting cutting-edge technology. The question is whether customers will care that Siri’s brains are actually Google’s creation.
What this actually means for users
The setup they’re describing is actually pretty clever. Apple’s own models will handle personal data on your device, maintaining their privacy focus. Then for more complex tasks that need serious computing power, it’ll tap into Google’s Gemini running on Apple’s private cloud servers. It’s the best of both worlds – privacy where it matters, power when you need it.
But let’s be real – spring 2026 feels like forever in AI time. By then, who knows what the competitive landscape will look like? Apple’s playing catch-up in a race that’s accelerating daily. At least they’re finally making the big moves needed to stay relevant.
