Apple is reportedly negotiating a deal that could see it pay approximately $1 billion per year to utilize Google Gemini’s advanced artificial intelligence technology within its digital assistant, Siri. This potential agreement aims to enhance Siri’s capabilities as part of an extensive update that Apple customers have eagerly anticipated. According to a report from Bloomberg, sources familiar with the negotiations indicate that Apple plans to implement Google’s AI model by 2026.
The discussions between Apple and Google are still in the final stages, with the companies seeking to finalize the terms of the agreement. Should the deal proceed as planned, it would mark a significant shift in the relationship between the two tech giants, with Apple looking to integrate Google’s robust AI capabilities into its existing infrastructure.
Google’s Gemini model is notably more advanced than Apple’s current offerings, boasting 1.2 trillion parameters compared to Apple’s own 150 billion parameters. This difference in scale suggests that incorporating Gemini could enable Siri to process more complex data and execute a wider range of tasks than it currently can.
While the plan to integrate Gemini sounds promising, it may not revolutionize the user experience as much as the technical specifications imply. The agreement would primarily allow Google’s AI to handle specific functions, such as summarization and planning, which assist Siri in managing information and executing more intricate tasks. However, Siri will continue to utilize Apple’s in-house models for many functions, likely due to privacy considerations. Google’s technology will operate on Apple’s own Private Cloud Compute servers, ensuring that user data remains segregated from Google’s primary infrastructure.
This arrangement means that Google Gemini will not become a core component of Apple’s operating system. Instead, it will serve as a cloud-based resource called upon by Siri when needed, without being integrated into the operating system’s deeper functionalities. Additionally, this deal will not extend Gemini’s capabilities to Siri’s chatbot functionalities, although there may be future developments in that area. In a prior statement, Apple CEO Tim Cook hinted at the possibility of expanding third-party chatbot support beyond the current integration with ChatGPT.
The proposed agreement between Apple and Google reflects a broader financial dynamic between the two companies. Google currently pays Apple around $20 billion annually to be the default search engine for Safari, Apple’s web browser. Earlier this year, there were concerns regarding the sustainability of this arrangement, but a federal ruling in September affirmed Google’s ability to continue these payments to maintain its preferential status.
Should the Siri-Gemini deal come to fruition, it would represent a substantial financial exchange flowing from Apple to Google, highlighting a reversal in their typical transaction flow. As Apple continues to seek ways to improve its digital services, leveraging Google’s advanced AI could be a strategic move to enhance user experience and maintain competitive advantage in the evolving tech landscape.
