Apple has made a major decision in the AI race. According to Bloomberg, Apple is close to adopting a 1.2 trillion parameter AI model developed by Google for approximately $1 billion annually, finally delivering the long-awaited major upgrade to Siri.
A Billion-Dollar Annual Contract
Apple is reportedly near finalizing a licensing deal for an ultra-powerful AI model developed by Google’s Gemini team to fundamentally improve its Siri voice assistant.
Deal Overview
- Value: Approximately $1 billion per year
- Model size: 1.2 trillion parameters
- Purpose: Powers Siri’s summarization and planning functions
- Rollout: Expected in iOS 26.4 and later
Why Apple Chose Google
Apple tested multiple AI models before selecting Google.
Models Evaluated
- OpenAI ChatGPT: Tested
- Anthropic Claude: Tested
- Google Gemini: Selected
Gemini was chosen due to its strong reception following the Gemini 3 release, model performance, and meeting Apple’s quality standards.
Siri’s Challenges and Expectations
Since its debut with iPhone 4s in 2011, Siri has faced persistent criticism for being “not smart enough” compared to competitors.
Previous Challenges
- Limited ability to handle complex queries
- Context understanding limitations
- Falling behind competitors (Alexa, Google Assistant)
Post-Gemini Expectations
- Summarization: Condensing long emails and documents
- Planning: Understanding user intent and creating action plans
- Natural conversation: More human-like dialogue capabilities
Integration with Apple Intelligence
The Gemini adoption is positioned as part of Apple’s broader “Apple Intelligence” platform initiative.
Apple is adopting Gemini as an interim solution while also developing its own 1 trillion parameter cloud-based model. The Google contract serves partly as a “bridge” until Apple’s own model is ready.
Organizational Changes
In March 2025, Apple implemented organizational changes following AI development delays.
- John Giannandrea: Moved from AI leadership role
- Mike Rockwell: Took charge of Siri
- Context: CEO Tim Cook lost confidence in AI product development execution
These personnel changes reflect Apple’s sense of urgency about falling behind in the AI race.
Industry Impact
Boosted Credibility for Google AI
Apple’s adoption of Gemini significantly enhances Google’s AI technology credibility. The fact that “Apple chose it” provides powerful endorsement for other companies considering Gemini.
Voice Assistant Market Reshuffling
- Google: Already integrated Gemini into its own Assistant
- Amazon: Rolled out AI overhaul for Alexa
- Apple: Finally entering AI enhancement seriously
Balancing Privacy
Apple is known for prioritizing privacy. The partnership with Google reportedly maintains Apple’s privacy standards.
Summary
The Apple-Google Siri-Gemini partnership marks a significant turning point in the AI industry:
- Apple’s pragmatism: Choosing the optimal solution over in-house development
- Gemini’s victory: Gaining trust from a major tech company
- Siri’s revival: A chance to overcome years of criticism
The iOS 26.4 release is highly anticipated. For Apple users, Siri may finally become a “usable” assistant.