Apple Reportedly Nears $1 Billion Annual Deal with Google for Gemini-Powered Siri

Apple Inc. is reportedly finalizing an agreement to pay Google approximately $1 billion annually to integrate a custom version of Google's Gemini artificial intelligence model into a revamped Siri, expected to launch in spring 2026. This strategic partnership aims to significantly enhance Siri's capabilities, addressing Apple's efforts to catch up in the rapidly evolving generative AI landscape. The deal would see Google's 1.2-trillion-parameter Gemini model powering complex functions like summarization and multi-step task planning within Siri. This collaboration represents a pivotal moment for both tech giants. According to a recent social media post by Aakash Gupta, this arrangement signifies Apple's acknowledgment of Google's advanced AI infrastructure. "Apple's $1B annual check to Google is the most expensive admission of defeat in tech history," Gupta stated, highlighting the perceived gap in generative AI capabilities. The custom Gemini model is designed to run on Apple's Private Cloud Compute servers, ensuring user privacy while leveraging Google's AI prowess. This move comes as Google has demonstrated significant growth in the enterprise AI sector. Menlo data indicates that Google's enterprise API share has tripled in 24 months, rising from 5% to 18%. This strong performance positions Google to expand its influence into consumer-facing AI. "The $1B for Siri integration comes from a position of strength, not desperation," Gupta added, suggesting Google is converting its enterprise credibility into consumer distribution. For Apple, the partnership allows it to avoid potential "Maps-level embarrassment" by rapidly deploying a competitive AI solution. While Apple has been developing its own AI models, the company reportedly concluded that Google's inference infrastructure economics were superior for the scale required. Apple had also explored partnerships with other AI providers like OpenAI and Anthropic before reportedly settling on Google. The deal structure is believed to include performance gates and swap rights, offering Apple flexibility while Google gains valuable user data and brand awareness.