Apple is reportedly finalizing a landmark agreement with Google that would see the iPhone maker pay around $1 billion per year to use a custom version of Google’s Gemini AI model to power the next generation of Siri, according to a new report by Bloomberg.
The integration of Google’s Gemini technology would power an overhauled Siri experience, forming part of Apple’s upcoming suite of AI-driven features. The new Siri is expected to be faster, more conversational, and capable of handling complex, multi-step commands.
Ben Wood, chief analyst at CCS Insight, said the partnership reflects Apple’s pragmatic approach to AI adoption.
“Apple knows it’s behind in the generative AI race. Partnering with Google allows it to catch up quickly without compromising on user experience,” Wood noted. “It’s a tactical alliance, not a surrender.”
Dan Ives, a tech analyst at Wedbush Securities, described the potential deal as “a billion-dollar bridge” for Apple.
“Apple is essentially buying time. This deal gives it access to world-class AI infrastructure while it works quietly on its own long-term model,” he explained.
Apple’s decision underscores the company’s urgency to keep pace with AI leaders like OpenAI, Anthropic, and Google, as the competition to dominate generative AI continues to accelerate.
