Apple and Google have entered into a multi‑year agreement that will embed Google’s Gemini AI models into Siri and a suite of future Apple Intelligence services. The partnership centers on Gemini Pro, the high‑capacity variant that offers advanced reasoning and multimodal understanding, and is expected to be the core engine behind Siri’s next‑generation conversational capabilities.
Under the terms disclosed by Apple, the company will pay Google approximately $1 billion per year for access to Gemini, a figure that reflects the premium value Apple places on the model’s performance. The deal is structured as a long‑term license that allows Apple to scale the technology across its ecosystem while keeping the bulk of processing on Apple’s Private Cloud Compute infrastructure, thereby preserving the company’s privacy‑first stance.
Apple has outlined a phased rollout: a beta of the Gemini‑powered Siri is slated for release in the third quarter of 2026, with a full public launch expected in the first half of 2027. Beyond Siri, Apple plans to embed Gemini into its broader Apple Intelligence suite, which will power context‑aware features in iPhone, iPad, and Mac, and is expected to unlock new services such as AI‑driven content creation and advanced accessibility tools.
The partnership is designed to keep user data on device or within Apple’s secure cloud, preventing direct data transfer to Google. Apple’s engineering team will fine‑tune Gemini on its own silicon, leveraging the Neural Accelerators in the latest M‑series chips to run inference locally, while more complex tasks will be offloaded to Apple’s Private Cloud Compute, ensuring that privacy remains a core differentiator.
Market reaction to the announcement was swift. Alphabet’s market capitalization crossed the $4 trillion threshold, and Apple’s Services revenue outlook received a modest lift as analysts noted the potential for higher engagement and monetization from AI‑enhanced experiences. The deal also reassured investors that Apple is closing the AI gap that has been a point of concern for some analysts.
Strategically, the partnership positions Apple to accelerate its AI roadmap without building the entire model in-house, allowing the company to focus on ecosystem integration and hardware optimization. The expected boost to Siri’s capabilities is likely to increase user engagement, which in turn can drive higher Services revenue through subscriptions, app store purchases, and new AI‑driven product offerings. In the broader competitive landscape, the deal signals Apple’s intent to compete more directly with Google and OpenAI in the generative AI space while maintaining its privacy‑centric brand promise.
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