Apple close to paying Google $1B for Siri upgrade

Apple eyes Google for Siri

Apple is reportedly close to a deal to pay about one billion dollars a year for access to a custom version of Google’s Gemini model, which reporters say uses roughly 1.2 trillion parameters. This partnership could finally give Siri the long-awaited upgrade users have been asking for.

Reporters say Apple tested several third party models including offerings from OpenAI and Anthropic before entering advanced talks with Google about a custom Gemini model to improve Siri’s ability to handle complex requests.

A billion-dollar yearly deal

The rumored $1 billion annual payment shows how serious Apple is about catching up in artificial intelligence. For a company known for doing everything in-house, this level of investment in outside tech is striking.

People familiar with the matter told reporters that licensing a custom Gemini model would give Apple a faster path to higher capability while its own models are still under development.

The deal reportedly covers access to Gemini’s advanced AI capabilities while keeping Apple’s private cloud secure and separate. It’s an expensive shortcut, but one that could help Siri finally sound truly smart.

Why Google won Apple’s trust

Apple didn’t rush into this deal. It reportedly tested several AI systems, including OpenAI’s ChatGPT and Anthropic’s Claude, before settling on Gemini.

Apple engineers reportedly found Gemini stronger at complex reasoning and summarization tasks during tests, which is why the company entered advanced talks with Google.

For Google, the partnership is a win, too. It strengthens Gemini’s reputation and shows how much trust Apple has placed in its AI. Both companies benefit: Apple gets a faster route to better Siri features, and Google gains another high-profile customer relying on its model.

How Gemini will help Siri

Reporters say the custom Gemini model would be used for Siri’s summarizer and planner functions, while other Siri capabilities would continue to use Apple models.

This hybrid setup gives Siri a big performance boost without fully outsourcing control. Gemini’s role will be to handle the heavy lifting for natural language and reasoning tasks, while Apple’s software ensures data privacy and consistency.

Keeping privacy front and center

According to reporting, Apple plans to run the custom model on its Private Cloud Compute servers, so the work would happen on Apple machines rather than on Google infrastructure. That distinction helps Apple preserve its strict privacy promise while still benefiting from advanced machine learning.

To make this work, Apple has already dedicated specialized servers for the new AI system. The company’s long focus on security gives it an edge, allowing it to use outside help without compromising user trust.

It’s another sign that Apple wants smarter tech without sacrificing its core values.

Inside Apple’s project Glenwood

The Siri overhaul has been years in the making. Internally, Apple calls the project “Glenwood,” and it’s led by Vision Pro creator Mike Rockwell and software chief Craig Federighi. Their mission is to rebuild Siri’s foundation so it can match modern AI assistants that use far more powerful models.

The next Siri, code-named “Linwood,” is expected to arrive with iOS 26.4 next spring. It’s designed to make Apple devices feel more personal and responsive. With Gemini behind it, Siri could finally handle long conversations, summaries, and task planning without losing context or clarity.

Apple’s quiet approach to the deal

Unlike the companies’ earlier Safari search engine deal, Apple doesn’t plan to promote this partnership publicly. Google will remain a behind-the-scenes technology provider rather than a brand partner. The arrangement allows Apple to keep the spotlight on Siri’s performance, not the company powering its AI engine.

This low-profile approach fits Apple’s image of independence. Even if Gemini plays a crucial role, Apple will frame the upgrade as part of its own “Apple Intelligence” ecosystem. It’s a delicate balance between acknowledging outside help and maintaining its reputation for building everything itself.

Stocks react to AI news

When reports of the deal surfaced, Wall Street took notice. Apple shares climbed modestly, while Alphabet’s stock jumped more than three points.

Investors see the collaboration as a sign that Apple is serious about catching up in the AI race and that Google’s Gemini platform is becoming an industry standard.

These moves show how AI partnerships are shaping tech’s next big phase. With both giants gaining from the collaboration, analysts expect others to follow suit. The days of companies trying to do everything on their own may be coming to an end as AI complexity keeps rising.

Apple’s fallback plan in China

Because Google’s services are banned in China, Apple can’t rely on Gemini there. Instead, the company is developing a localized version of Siri that uses in-house AI models with filters made by Alibaba. These filters help meet government regulations while keeping Siri’s experience consistent across regions.

Apple has also explored a potential partnership with Baidu for additional AI tools in China. While these versions will differ from those in the U.S., they reflect Apple’s push to bring its next wave of AI upgrades worldwide, even in markets with strict digital rules.

Apple’s plan to go solo

Despite leaning on Google for now, Apple doesn’t plan to stay dependent forever. Its AI team is already building a powerful 1 trillion parameter model of its own. The goal is to eventually replace Gemini with Apple-made AI once it reaches the same quality and scale.

It won’t be easy, especially as Google keeps improving Gemini. But Apple’s track record suggests it will eventually get there. The company’s long game is clear: learn fast from the partnership, then stand on its own again with full control of its AI ecosystem.

Gemini’s dominance in AI race

Gemini 2.5 Pro performs at or near the top on many public reasoning benchmarks and reviews, though leaderboard positions vary by the test and task.

Gemini’s success shows how fast the AI landscape is shifting. Instead of competing alone, tech giants are finding ways to share technology while still protecting their unique strengths.

This collaboration marks a new era of pragmatic cooperation between rivals who once drew strict lines in the sand.

A shift in Apple’s strategy

Known for its tight control and secretive development, the company is now showing flexibility. Adopting outside technology may be the fastest way to keep pace with the explosive progress of generative AI. It also shows how much is at stake in getting Siri right.

While the partnership may seem temporary, it’s part of a bigger trend in the tech world: collaboration over competition. For users, it could mean a much smarter, faster Siri experience coming sooner than anyone expected. For Apple, it’s a reminder that innovation sometimes means knowing when to ask for help.

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Siri’s smarter future begins now

If all goes to plan, users could see the new Siri as soon as next spring. It’s expected to deliver more natural conversations, better summaries, and smarter task handling.

For Apple, the deal with Google marks a turning point, from playing catch-up to aiming ahead in the AI assistant race.

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What do you think of Apple teaming up with Google to power Siri’s next chapter? Share your thoughts on Apple’s close to paying Google $1B for Siri upgrade.

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This slideshow was made with AI assistance and human editing.