Apple and Google have entered an AI technology partnership reportedly worth as much as US$5 billion, according to industry sources cited by the Financial Times. Meanwhile, Bloomberg reported that Apple may pay roughly US$1 billion annually to use a customized Gemini model developed by Google, which runs on Apple's own servers to maintain user privacy.
The Financial Times, citing Gene Munster, a partner at Deepwater Asset Management, estimates that the long-term value of the collaboration between Apple and Google on Gemini technology could reach US$5 billion. This figure significantly exceeds previous market expectations and underlines a growing trend of tech giants collaborating on artificial intelligence to enhance product capabilities. Munster also highlighted the implications for OpenAI, suggesting Apple is unlikely to support multiple large-scale AI models concurrently due to cost efficiencies. As a result, integration with OpenAI's ChatGPT appears improbable moving forward.
Reports indicate that OpenAI declined participation in the development of Siri's backend AI infrastructure, choosing instead to focus on creating its own AI devices. This decision led Apple to partner with Google, which has extensive experience deploying AI models for large enterprises. The collaboration enables Apple to implement a refined version of its Gemini model into Siri for the upcoming iOS 26.4 update. This update aims to improve Siri's delayed features, including enhanced in-app operations, better understanding of personal user context, and increased screen awareness, thereby advancing the voice assistant's interactive capabilities.
Despite the partnership, Apple Intelligence and Siri services do not carry any Google or Gemini branding. Analysts suggest this strategy benefits Apple by masking the AI source behind Siri, ensuring consumers perceive improvements without associating them directly with third-party providers.
For Google, the agreement represents a steady and substantial revenue stream while elevating the Gemini brand. It strengthens Google's position as a key player in consumer device AI ecosystems, extending the reach of its AI technology beyond its native platforms.
This partnership highlights a shifting landscape in AI collaboration, where major companies leverage partnerships to accelerate innovation while managing scale and privacy considerations in competitive consumer markets.
Article translated by Jingyue Hsiao and edited by Jack Wu
