Apple and Google have announced a major artificial intelligence partnership. This multiyear agreement will see Google's Gemini technology power the next generation of Siri on iPhones and other Apple devices.
The Core of the Deal
The partnership represents a fundamental integration of Google's AI into Apple's ecosystem. Gemini will serve as the foundation for Apple's broader AI strategy rather than just handling overflow queries. Apple confirmed it chose Google's technology after careful evaluation, determining it provides the most capable foundation for its AI ambitions.
According to a joint statement released Monday, "Apple and Google have entered into a multi-year collaboration under which the next generation of Apple Foundation Models will be based on Google's Gemini models and cloud technology. These models will help power future Apple Intelligence features, including a more personalised Siri coming this year."
Financial and Technical Details
The deal is expected to be worth around $1 billion annually to Google. Apple will pay this amount for access to Google's 1.2-trillion parameter artificial intelligence model. This model is significantly larger and more powerful than Apple's own AI development efforts.
While specific agreement details remain private, industry analysts anticipate Google will license the base technology of Gemini to Apple. The iPhone maker will then make necessary tweaks to ensure the technology works seamlessly across its entire ecosystem.
AI models like Gemini typically have two development stages. The first involves pretraining where the model learns to generate coherent text strings. The second stage involves post-training where the model develops a distinct personality. Google will most likely provide Apple with the pretrained version of Gemini.
Competition Concerns Emerge
This new partnership has immediately raised competition-related concerns within the technology industry. Elon Musk expressed his apprehension in a post on social media platform X. "This seems like an unreasonable concentration of power for Google, given that (they) also have Android and Chrome," Musk stated.
Musk operates his own AI firm called xAI, which competes directly with other major AI companies. His company builds foundational models and invests billions in massive infrastructure development.
Impact on Existing Partnerships
The Google deal naturally raises questions about Apple's existing partnership with ChatGPT creator OpenAI. With Google's Gemini 3 update, the software giant was largely seen to have taken a lead over key rival ChatGPT. ChatGPT had enjoyed an early advantage in the generative AI race following its 2022 launch.
This new arrangement suggests Apple is placing greater emphasis on Google's technology for its core AI strategy. The partnership represents a significant shift in Apple's approach to artificial intelligence development and deployment.
Privacy and Implementation Details
Both companies have addressed potential privacy concerns arising from this collaboration. They confirmed that Apple Intelligence will continue to run on Apple devices and Private Cloud Compute while maintaining Apple's strict privacy standards.
The company emphasizes that its personal cloud ensures personal user data sent to the PCC remains inaccessible to anyone other than the user. This approach aims to maintain Apple's reputation for strong privacy protections despite the integration of Google's technology.
The next-generation Siri powered by Gemini technology is expected to arrive with iOS 26.4. This update will likely release to the public in March or April 2026.
Historical Context and Market Impact
Apple and Google have a history of significant collaboration. Most notably, Google has paid Apple over $20 billion to keep its search engine as the default option on iPhones. This established relationship provides context for their latest AI partnership.
Following the announcement, Google's stock briefly touched above a $4 trillion market valuation. This market response indicates investor confidence in the partnership's potential benefits for Google.
Why Apple Needs This Partnership
Apple has largely remained on the sidelines of the AI revolution that swept through Wall Street following ChatGPT's launch. While competitors like Amazon, Meta, and Microsoft invested billions in AI infrastructure and products, Apple struggled to deliver on its AI promises.
The company announced a significant Siri upgrade during its WWDC 2024 keynote but was forced to delay these features. Apple acknowledged it would take longer than anticipated to deliver these capabilities, pushing the rollout from 2025 to 2026.
Google's 1.2 trillion parameter model offers Apple a powerful solution that would have been difficult to develop independently within the same timeframe. This partnership enables Apple to accelerate its AI capabilities significantly.
The revamped Siri should be far more capable than what Apple could have developed on its own. This strategic move allows Apple to compete more effectively in the rapidly evolving AI landscape while leveraging Google's technological advancements.
