Apple is close to finalizing a $1 billion‑per‑year agreement with Google to embed the company’s 1.2 trillion‑parameter Gemini model into its Siri voice assistant. The new engine will replace Apple’s existing 150 billion‑parameter model and is expected to ship with iOS 26.4 in spring 2026.
The partnership addresses a long‑standing gap in Apple’s AI capabilities. By running the custom Gemini model on Apple’s Private Cloud Compute servers, the company can keep user data isolated from Google’s systems, preserving its privacy promise. The deal is described as a temporary bridge while Apple continues to develop its own advanced AI models, a process that has already seen the company invest $500 billion over four years in AI infrastructure and $100 billion in R&D over the past five years.
Financially, the $1 billion annual cost is expected to strengthen Apple’s services revenue. Apple’s services segment generated $28.75 billion in Q4 2025, up more than 15 % year‑over‑year, and totaled roughly $96 billion for FY 2024. The partnership should reduce the time and cost of in‑house AI development, though exact savings are not disclosed.
In the broader competitive landscape, the deal gives Google a new revenue stream and expands its Gemini footprint to hundreds of millions of iPhones. For Apple, the upgrade is a strategic move to catch up with rivals such as Google Assistant, Amazon Alexa, Meta’s assistant, and Microsoft’s Copilot. Apple will continue to use its own models in China and partner with Alibaba for local AI features.
Apple’s leadership has underscored the importance of the partnership. Tim Cook said Apple is “broadening its AI ecosystem through strategic partnerships” and that the Siri upgrade is part of a broader “Apple Intelligence” strategy that balances privacy, user experience, and rapid innovation.
Investors responded positively to the announcement, reflecting confidence in Apple’s AI strategy and the potential for the upgraded Siri to drive deeper engagement across its services ecosystem.
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