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Apple Near Deal to Pay Google $1B Yearly for Custom Gemini to Power Siri

Apple is on the verge of securing a major deal with Google to integrate a custom version of Google’s Gemini AI model into its revamped Siri, according to a report by Bloomberg’s Mark Gurman. The agreement, expected to be finalized soon, would see Apple pay Google approximately $1 billion annually for access to the advanced AI technology. This move marks a significant shift for Apple, which has long prioritized in-house development and privacy-focused AI, now turning to a third-party provider to accelerate its AI ambitions. The custom Gemini model will feature 1.2 trillion parameters—the measure of a model’s complexity and capacity—making it roughly eight times more powerful than the current cloud-based version of Apple Intelligence, which uses 150 billion parameters. This substantial increase in scale is expected to dramatically improve Siri’s ability to understand context, generate natural-sounding responses, and perform complex tasks like planning, summarization, and multi-step reasoning. Apple plans to run the Gemini model on its Private Cloud Compute servers, ensuring that user data remains encrypted and processed on Apple’s own infrastructure, a key part of the company’s privacy strategy. However, Apple will not rely solely on Google’s model. The company will continue to use its own AI models for certain Siri functions, maintaining a hybrid approach that balances third-party power with in-house control. The decision to partner with Google follows extensive testing of AI models from OpenAI, Anthropic, and Google. Apple reportedly evaluated all three options before settling on Google’s Gemini as the best fit for its technical and privacy requirements. The partnership does not include integrating Gemini’s standalone chatbot into Siri—Apple already supports ChatGPT integration—but instead focuses on enhancing Siri’s underlying intelligence. This move comes as Apple seeks to recover ground after delaying the rollout of AI-powered features for Siri. The company had initially aimed to launch Apple Intelligence features earlier but faced setbacks in refining performance and reliability. CEO Tim Cook confirmed in June that the upgraded Siri is still on track for a spring launch, though details remain fluid. Despite this partnership, Apple remains committed to developing its own AI capabilities. The company is investing heavily in internal AI research and is expected to eventually replace the Google-powered model with its own proprietary technology. The Google deal is seen as a temporary bridge to accelerate Siri’s transformation while Apple builds its long-term AI foundation. The collaboration underscores the growing trend of tech giants leveraging external AI expertise to compete in the rapidly evolving generative AI landscape. While Apple has traditionally resisted reliance on external AI models, the urgency to deliver competitive AI features has prompted a strategic pivot. The new Siri is expected to offer smarter, more proactive assistance—such as scheduling meetings, summarizing emails, and managing tasks across apps—by combining the scale of Gemini with Apple’s ecosystem integration and privacy safeguards. Apple’s partnership with Google also opens the door for further third-party AI integrations within Apple Intelligence, with Cook indicating openness to additional collaborations. As the AI race intensifies, Apple’s hybrid strategy—blending external power with internal innovation—could define its path forward in the era of intelligent assistants.

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Apple Near Deal to Pay Google $1B Yearly for Custom Gemini to Power Siri | Trending Stories | HyperAI