Welcome to the forefront of conversational AI as we explore the fascinating world of AI chatbots in our dedicated blog series. Discover the latest advancements, applications, and strategies that propel the evolution of chatbot technology. From enhancing customer interactions to streamlining business processes, these articles delve into the innovative ways artificial intelligence is shaping the landscape of automated conversational agents. Whether you’re a business owner, developer, or simply intrigued by the future of interactive technology, join us on this journey to unravel the transformative power and endless possibilities of AI chatbots.
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Apple Strikes $1B Deal With Google for Custom Gemini AI in Siri
Apple will pay Google $1 billion annually for custom Gemini model to power Siri AI
PUBLISHED: Wed, Nov 5, 2025, 8:37 PM UTC | UPDATED: Fri, Jan 30, 2026, 3:41 AM UTC
3 mins read
Apple will pay Google around $1 billion annually for a custom Gemini AI model according to Bloomberg's Mark Gurman
The custom model will use 1.2 trillion parameters – eight times larger than Apple's current cloud-based AI system
Apple will run Gemini on its Private Cloud Compute servers while maintaining some in-house Siri features
Tim Cook confirmed the upgraded Siri launches spring 2025, marking Apple's most significant AI partnership
Apple just struck a massive $1 billion annual deal with Google to power its next-generation Siri with a custom version of the Gemini AI model. The partnership represents Apple's biggest AI investment yet and signals the iPhone maker's urgent push to catch up in the artificial intelligence race after months of delays.
Apple just rewrote the AI playbook with a bombshell $1 billion annual partnership that puts Google's Gemini at the heart of Siri's brain. The deal, first reported by Bloomberg's Mark Gurman, represents the largest AI licensing agreement in tech history and signals Apple's desperation to close the intelligence gap.
The numbers tell the story of Apple's AI awakening. Google's custom Gemini model will pack 1.2 trillion parameters – a massive leap from the 150 billion parameters powering Apple's current cloud-based Intelligence features. That's eight times the computational muscle, designed specifically for tasks like summarization and planning that have become table stakes in the AI era.
"We've been preparing for this shift since Q2," one Apple executive familiar with the negotiations told Bloomberg, though the source declined to be named. The admission reveals how frantically Apple's been working behind the scenes while competitors like Microsoft and Google raced ahead with ChatGPT integrations and Bard deployments.
Apple's approach splits the difference between dependence and independence. The company will run the custom Gemini model on its own Private Cloud Compute servers, maintaining the privacy-first architecture that's become central to its brand promise. Meanwhile, Apple's keeping some Siri functions powered by in-house models, creating a hybrid system that hedges against total reliance on Google's technology.
This represents a dramatic shift from Apple's traditional stance on AI partnerships. Just six months ago, that Apple had been weighing models from and Anthropic before ultimately settling on Google's offering. The company already integrates ChatGPT into Siri for certain queries, but this Gemini deal goes much deeper into the operating system's core intelligence.
The business implications ripple far beyond Cupertino. Google's cloud division just landed its biggest enterprise customer, potentially adding $1 billion in recurring revenue at margins that could approach 70%. For Apple, it's an expensive insurance policy against falling further behind in the AI arms race that's reshaping how users interact with their devices.
Tim Cook telegraphed this move during last week's earnings call when he told investors the redesigned Siri would arrive "next spring" while leaving the door open for more third-party AI integrations. The CEO's comments now read like a preview of partnerships that could reshape Apple's entire AI strategy.
But this isn't a white flag on Apple's own AI ambitions. According to Bloomberg, the company continues developing proprietary models that could eventually replace Gemini entirely. It's the classic Apple playbook – partner tactically while building strategically, then cut the cord when internal capabilities catch up.
The partnership announcement comes as Apple scrambles to recover from delayed AI feature rollouts that pushed key Siri improvements into 2025. Competitors haven't been standing still while Apple retooled its approach. Microsoft's Copilot integration across Office apps and Google's Bard-powered search have set new user expectations for AI assistants.
For Google, the deal validates its enterprise AI strategy while creating an interesting competitive dynamic. The same company that competes with Apple in phones, tablets, and smart home devices now powers the intelligence behind Siri's most sophisticated features. It's a relationship that could prove as complex as it is lucrative.
Apple's billion-dollar bet on Google's AI represents more than just a licensing deal – it's acknowledgment that the AI race requires unprecedented collaboration between traditional rivals. While Apple maintains its privacy-focused architecture and continues developing internal capabilities, this partnership gives it the computational firepower needed to compete with Microsoft's Copilot and Google's own AI-powered services. The real test comes this spring when users finally get hands-on with the upgraded Siri and decide whether Apple's hybrid approach can match the AI experiences they've been promised.
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