Apple is set to integrate a customized version of Google’s Gemini AI model into its Siri virtual assistant, launching in spring 2026. This partnership will cost Apple an estimated $1 billion per year, according to reports from Bloomberg. The move underscores Apple’s reliance on external AI expertise, as the company has lagged behind competitors in developing its own competitive large language models (LLMs).
Why Apple Chose Google Over Anthropic
Apple evaluated both Google and Anthropic as potential AI providers. While Anthropic’s model would have cost $1.5 billion annually, Google offered a more economical solution, making it the preferred choice. This decision highlights the financial constraints driving Apple’s AI strategy, despite its substantial resources.
Hybrid Approach: On-Device vs. Cloud AI
The Gemini model will operate on Apple’s private cloud servers for complex tasks, while the company will continue using its own AI models for on-device processing of personal data. This hybrid approach reflects Apple’s commitment to privacy, balancing advanced AI capabilities with user data protection. Apple intends to avoid publicly acknowledging Google’s involvement in the Siri upgrade, maintaining control over its brand messaging.
Apple’s AI Lag and the Cost of Innovation
Apple has been slow to invest in AI, largely due to its prioritization of privacy and the substantial costs associated with developing cutting-edge models. Training a model like GPT-5 is estimated to exceed $1 billion, not including the salaries of specialized AI researchers. This financial and expertise gap has forced Apple to rely on partnerships rather than internal development.
Existing Relationship: Google’s $20 Billion Apple Deal
Apple’s reliance on Google extends beyond AI. The tech giant already receives $20 billion annually from Google to remain the default search engine on Apple devices. This arrangement, which has drawn scrutiny from the Department of Justice, reinforces Google’s dominance and Apple’s dependence. The deal prevents Apple from competing with Google Search, even though the company denies this is the intention.
Apple’s AI strategy is less about innovation and more about cost-effective adaptation. The $1 billion deal with Google ensures Siri gains competitive AI features without the massive investment required to build them independently.
The move confirms that even the world’s wealthiest tech company sometimes chooses pragmatism over self-reliance in the face of rapid technological advancement.
