Apple Pays Google $1 Billion a Year for Gemini AI to Power Siri
Apple Surrenders to Google’s AI Power, Paying $1 Billion a Year for Gemini
Recent reports reveal that Apple has effectively abandoned its own artificial intelligence project, choosing instead to partner with Google to power the next generation of its virtual assistant, Siri. According to CNET, Apple will pay around $1 billion per year to access a custom version of Google’s Gemini AI model, marking a major strategic shift in Apple’s approach to artificial intelligence.
Apple Ends Its Own AI Project
For nearly two years, Apple had been developing its proprietary AI initiative, known internally as Apple Intelligence. However, the project reportedly failed to meet expectations. Facing mounting competition from industry leaders like OpenAI and Anthropic, Apple decided to license Google’s Gemini technology to strengthen Siri’s intelligence and responsiveness.
Sources from Bloomberg confirm that Apple considered working with Anthropic, but opted for Google’s Gemini due to lower costs. While Anthropic’s model could have cost Apple up to $1.5 billion per year, Google’s offer was more financially viable and offered superior scalability.
Gemini’s Massive AI Capabilities
The customized Gemini AI model provided to Apple is said to be enormous — boasting 1.2 trillion parameters. This advanced infrastructure gives Apple access to a vast data pool, enabling faster and more complex AI-driven operations.
Under this partnership, Gemini will run on Apple’s own cloud servers, ensuring security and performance. Apple’s in-house models will continue to process personal user data locally on devices, while Gemini handles more complex tasks in the background.
Interestingly, Apple reportedly will not highlight Google’s involvement in its marketing materials for the upcoming Siri update. This suggests that Apple aims to present the enhanced Siri as its own innovation, even though Google’s technology will power it behind the scenes.
A Strengthened Partnership Between Tech Giants
This billion-dollar AI deal adds another layer to the already lucrative financial relationship between Apple and Google. Currently, Google pays Apple around $20 billion annually to remain the default search engine on Safari. The new Gemini arrangement reinforces their collaboration, showing that competition in AI may sometimes lead to cooperation between major tech players.
Industry analysts view this move as Apple’s attempt to catch up after lagging behind in the AI race. With competitors like Microsoft, Google, and OpenAI leading the charge in generative AI, Apple’s partnership with Gemini could be a critical step toward modernizing Siri and closing the technological gap.
What’s Next for Siri and AI on Apple Devices?
The new AI-powered Siri is expected to launch in spring 2026, integrated into upcoming iPhone and Mac updates. Users can expect smarter responses, improved personalization, and deeper contextual understanding all thanks to Gemini’s capabilities.
While Apple maintains its commitment to user privacy, this collaboration shows that even one of the world’s most valuable companies recognizes the need to rely on external AI innovation to stay competitive.
