Focus on the BIG picture.
Monday, Dec 08, 2025
Outside the box.
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
Apple partners with rival Google to integrate a customized Gemini model into its upcoming Apple Intelligence platform
In a striking turn for the world’s most secretive technology company, Apple Inc. is reportedly preparing to pay Google approximately one billion dollars per year to license a customized version of its Gemini large-language model.
The deal, first reported by Bloomberg and later confirmed by several major outlets, will allow Apple to integrate Google’s most advanced generative AI into its next-generation Siri assistant and broader Apple Intelligence suite.
The partnership represents a major strategic shift for Apple, a company long known for keeping its technology stack fully in-house.
Executives have long resisted reliance on competitors, particularly Google.
Yet as the artificial intelligence race accelerates, Apple appears to have concluded that Gemini’s scale—estimated at roughly 1.2 trillion parameters—offers capabilities that its own in-development models cannot yet match.
According to the reports, Apple’s adapted Gemini model will handle advanced generative tasks such as document summarization, complex text generation, and open-ended knowledge queries.
It will run through Apple’s Private Cloud Compute architecture, ensuring that data remains encrypted and inaccessible even to Apple engineers.
Simpler on-device functions will continue to rely on Apple’s smaller proprietary models, maintaining a hybrid structure designed to balance privacy and performance.
The upgraded Siri, part of Apple’s internal project codenamed “Glenwood,” is expected to debut in spring 2026.
The initiative is being led by Mike Rockwell, who previously oversaw the Vision Pro mixed-reality headset, alongside senior software executive Craig Federighi.
Apple sees the launch as a defining moment in its effort to regain ground in artificial intelligence after several years of hesitation.
While the annual one billion dollar payment is a fraction of Apple’s immense cash reserves—estimated at over fifty-five billion dollars—the partnership carries deeper symbolic meaning.
It underscores how even Apple, famed for independence, now recognizes that AI innovation may demand collaboration.
Ironically, the arrangement mirrors the reverse relationship in which Google already pays Apple about twenty billion dollars a year to remain the default search engine on iPhones and Macs.
Industry analysts interpret the deal as both pragmatic and humbling for Apple.
It provides immediate access to state-of-the-art AI while buying time to advance its internal models.
For Google, it further cements Gemini’s dominance as a foundation model adopted by competitors as well as partners.
The collaboration could redefine the balance of power in the global AI ecosystem.
Apple’s challenge now lies in proving that it can merge privacy, reliability, and creative intelligence within one seamless user experience.
The success—or failure—of this hybrid approach may determine how the next chapter of personal computing is written.
The deal, first reported by Bloomberg and later confirmed by several major outlets, will allow Apple to integrate Google’s most advanced generative AI into its next-generation Siri assistant and broader Apple Intelligence suite.
The partnership represents a major strategic shift for Apple, a company long known for keeping its technology stack fully in-house.
Executives have long resisted reliance on competitors, particularly Google.
Yet as the artificial intelligence race accelerates, Apple appears to have concluded that Gemini’s scale—estimated at roughly 1.2 trillion parameters—offers capabilities that its own in-development models cannot yet match.
According to the reports, Apple’s adapted Gemini model will handle advanced generative tasks such as document summarization, complex text generation, and open-ended knowledge queries.
It will run through Apple’s Private Cloud Compute architecture, ensuring that data remains encrypted and inaccessible even to Apple engineers.
Simpler on-device functions will continue to rely on Apple’s smaller proprietary models, maintaining a hybrid structure designed to balance privacy and performance.
The upgraded Siri, part of Apple’s internal project codenamed “Glenwood,” is expected to debut in spring 2026.
The initiative is being led by Mike Rockwell, who previously oversaw the Vision Pro mixed-reality headset, alongside senior software executive Craig Federighi.
Apple sees the launch as a defining moment in its effort to regain ground in artificial intelligence after several years of hesitation.
While the annual one billion dollar payment is a fraction of Apple’s immense cash reserves—estimated at over fifty-five billion dollars—the partnership carries deeper symbolic meaning.
It underscores how even Apple, famed for independence, now recognizes that AI innovation may demand collaboration.
Ironically, the arrangement mirrors the reverse relationship in which Google already pays Apple about twenty billion dollars a year to remain the default search engine on iPhones and Macs.
Industry analysts interpret the deal as both pragmatic and humbling for Apple.
It provides immediate access to state-of-the-art AI while buying time to advance its internal models.
For Google, it further cements Gemini’s dominance as a foundation model adopted by competitors as well as partners.
The collaboration could redefine the balance of power in the global AI ecosystem.
Apple’s challenge now lies in proving that it can merge privacy, reliability, and creative intelligence within one seamless user experience.
The success—or failure—of this hybrid approach may determine how the next chapter of personal computing is written.
