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Apple strikes deal with Google to use Gemini AI
Summary
Apple & Google have struck a deal for Apple to use Google's Gemini AI as the base for Apple's AI features including a "more personalised" AI powered Siri coming later this year.
An older Bloomberg article [paywalled] suggested the deal could be worth around 1 Billion dollars per year for Google.
Despite being competitors Apple & Google have struck similar deals in the past, with Google paying to make Google the default search engine on Apple devices.
Quotes
Quote
Apple and Google have entered into a multi-year collaboration under which the next generation of Apple Foundation Models will be based on Google's Gemini models and cloud technology. These models will help power future Apple Intelligence features, including a more personalized Siri coming this year.
After careful evaluation, Apple determined that Google's Al technology provides the most capable foundation for Apple Foundation Models and is excited about the innovative new experiences it will unlock for Apple users. Apple Intelligence will continue to run on Apple devices and Private Cloud Compute, while maintaining Apple's industry-leading privacy standards.
https://blog.google/company-news/inside-google/company-announcements/joint-statement-google-apple/
Quote
Apple , opens new tab(AAPL.O) will use Google's Gemini models for its revamped Siri coming later this year under a multi-year deal that deepens the tech giants' alliance in the artificial intelligence era and bolsters Alphabet's position in the race against OpenAI.
The deal announced Monday marks a major vote of confidence for Google. Its technology already drives much of Samsung's "Galaxy AI," but the Siri deal unlocks a large market with Apple's installed base of more than two billion active devices.
https://www.reuters.com/business/google-apple-enter-into-multi-year-ai-deal-gemini-models-2026-01-12/
Not everybody is happy with the deal, with xAI owner Elon Musk calling it an unbelievable concentration of power for Google.
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"This seems like an unreasonable concentration of power for Google, given that (they) also have Android and Chrome," Tesla CEO Elon Musk said in a post on social media platform X.
My thoughts
Apple's deal to use Google Gemini for their default AI system means that Google's Gemini will be the default AI for both Android and iOS phones. Samsung's Galaxy AI is also based on Google's Gemini AI. This deal with Apple means that Google's Gemini will be powering a very significant number of smart phone's AI systems. Is the smart phone market going to give Google's Gemini an edge in the AI race?
Is Apple's decision to use Google's Gemini a signal th