Apple Taps Google Gemini for Siri Overhaul, Expanding AI Capabilities

Apple's decision to use Google Gemini for its latest AI initiatives was a highly anticipated development, following earlier reports of a potential partnership (TechCrunch, January 2026). This move is seen by some analysts, like Ming-Chi Kuo (AppleInsider, June 2026), as an opportunity for Apple to deliver a superior AI experience by leveraging Gemini within iOS and Private Cloud Compute, potentially surpassing what Google achieves with its own standalone Gemini platform. Kuo suggests that Apple's ability to integrate Gemini across its ecosystem will be a key factor in its long-term success in AI, despite initially being perceived as behind in the AI race.

The financial terms of this collaboration are estimated to be around $1 billion annually, paid by Apple to Google for licensing the custom 1.2-trillion-parameter Gemini model (heygotrade.com, June 2026). This agreement reportedly ensures that user data processing remains on Apple Silicon servers within Apple's Private Cloud Compute, addressing privacy concerns. While Apple gains a competitive AI assistant, Google receives a significant revenue stream and validation for Gemini as an enterprise-grade solution. This partnership also deepens the existing relationship where Google already pays Apple to be the default search engine, turning a one-way payment into a mutually beneficial two-way tie (heygotrade.com, June 2026).