In a significant move towards enhancing its virtual assistant, Siri, Apple is reportedly collaborating with Google to develop a custom Gemini AI model. According to a report by Bloomberg's Mark Gurman on November 2, this partnership aims to power the next iteration of Siri, scheduled for release in spring 2026. The decision to work with Google follows Apple's evaluation of AI competitors, including Anthropic, highlighting the tech giant's strategic choices in the evolving AI landscape.
As part of this agreement, Apple is set to invest a substantial $1 billion per year for the new Gemini AI model, which boasts an impressive 1.2 trillion parameters. Earlier reports indicated that partnering with Anthropic would have resulted in costs reaching $1.5 billion annually, making Google's offering more financially appealing. This decision not only reflects Apple's commitment to advancing its AI capabilities but also showcases its need to remain competitive in the tech industry.
The custom Gemini model is designed to operate on Apple's private cloud computer servers. This architecture enables Apple to handle more complex tasks, while its existing models will continue to manage personal data directly on devices. Interestingly, reports suggest that Apple does not intend to emphasize Google's involvement in its marketing strategies, indicating a preference for maintaining a distinct brand identity despite this collaboration.
Despite the promising partnership with Google, Apple has faced challenges in the AI domain. The tech company has been perceived as lagging behind its competitors in AI adoption and innovation. Historically, Apple has relied on external firms like OpenAI, known for creating ChatGPT, to enhance its systems with generative AI capabilities. This reliance underscores the ongoing struggle to develop a truly agentic Apple Intelligence, despite gradual improvements in its AI offerings.
Apple CEO Tim Cook has not dismissed the possibility of acquiring an AI company to bolster its capabilities further. Additionally, the relationship between Apple and Google extends beyond the current partnership, with Google paying Apple $20 billion annually to remain the default search engine on Apple devices. This arrangement not only generates significant revenue for Apple but also complicates its ability to develop a direct competitor to Google Search, a claim that Apple firmly denies.
This financial relationship has drawn scrutiny, particularly regarding legal considerations. The Department of Justice's case against Google has spotlighted this arrangement, with a judge previously ruling that Google's practices could be indicative of an illegal monopoly. As Apple navigates this complex landscape, its collaboration with Google on the Gemini AI model signifies a critical step towards enhancing Siri while addressing the competitive pressures of the modern tech environment.
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