Apple and Google have announced a multi-year partnership under which Google's Gemini AI models will be integrated into Apple's services, including a more personalized version of Siri and other Apple Intelligence features. The enhanced Siri is anticipated to launch in 2026. This collaboration follows previous discussions between Apple and other AI providers, and analysts suggest it marks a strategic move for both companies, though it may attract antitrust scrutiny.
Partnership Overview
The agreement will see Google's Gemini AI models provide the foundational technology for Apple Foundation Models and new experiences within Apple's ecosystem. Apple stated that it selected Google's AI technology after evaluation, determining it offers the most capable foundation while aligning with Apple's privacy standards. The partnership is a multi-year contract.
Technology Integration and Privacy
Apple has confirmed that the Gemini models will operate on its Private Cloud Compute servers. This arrangement aims to maintain Apple's privacy standards, with users potentially having the option to share prompts directly with Gemini. Apple Intelligence, the broader suite of generative AI features, will continue to function within Apple's devices and Private Cloud Compute system.
Financial Details
Reports indicate the agreement is structured as a cloud computing contract, characterized as a multi-billion dollar deal. Sources familiar with the arrangement suggest Apple could pay Google an estimated one billion dollars annually, potentially totaling several billion dollars over the duration of the contract.
Strategic Context and Industry Perspectives
This partnership is viewed as a significant strategic development. Industry analysts, including Francisco Jeronimo of IDC, have suggested that outsourcing the foundational AI layer indicates Apple's internal AI development efforts may not have matched Gemini's capability and scale in the short term. This represents a deviation from Apple's traditional approach of developing technology internally. The collaboration is also seen as mutually beneficial, potentially reinforcing both companies' positions in the evolving AI market against emerging startups. It builds upon a long-standing relationship, which includes Google serving as the default search engine on Apple devices.
Prior AI Engagements and Competitor Landscape
The announcement follows Apple's efforts to enhance its AI capabilities, which have included previous delays in delivering promised updates to Siri. In June 2024, Apple had partnered with OpenAI to integrate ChatGPT into its Apple Intelligence suite, and ChatGPT was also integrated with Siri in late 2024 as an interim solution. However, Gemini has reportedly surpassed ChatGPT in various benchmarks over the past year. Separately, OpenAI reportedly chose not to partner with Apple for Siri's AI in the autumn of the previous year, with intentions to prioritize the development of its own AI device, which has been linked to former Apple design chief Jony Ive. It is unconfirmed whether Apple formally offered a contract to OpenAI or if an explicit decline occurred.
Antitrust Considerations
Experts have indicated that the deal could attract antitrust scrutiny, similar to past issues related to Google's search engine dominance. Legal scholars, such as James Grimmelmann of Cornell Tech, have suggested that while preemptive blocks on such deals were not adopted in previous trials, this new agreement might lead to future antitrust investigations. Blake Reid, an associate professor of law at the University of Colorado Law School, noted that the specifics of data exchange are crucial from an antitrust perspective. If the agreement primarily involves payments without extensive data flow, the antitrust concerns might differ from those associated with the search engine deal, which involved a significant volume of user queries.