Apple (AAPL) is preparing to pay about $1 billion annually for access to Google’s (GOOGL) 1.2 trillion-parameter AI model, according to Bloomberg. The technology will help run Siri’s long-awaited upgrade, including its summarizer and planner features that handle complex, multi-step commands.
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After months of testing models from Google, OpenAI, and Anthropic, Apple reportedly decided that Google’s Gemini system offered the best balance of power and privacy. The deal would make Google a behind-the-scenes supplier rather than a public partner, unlike its search engine arrangement in Safari.
The new Siri, internally code-named Linwood, is expected to launch next spring as part of iOS 26.4.
It’s a Temporary Fix While Apple Builds Its Own AI
People familiar with the matter told Bloomberg that Apple views the deal as an interim step. The company continues to develop its own 1 trillion-parameter AI model for cloud-based use, which could power Siri independently as soon as next year.
Until then, the Gemini system will run on Apple’s Private Cloud Compute servers, keeping user data isolated from Google’s infrastructure. This system allows Apple to use Google’s model for processing without giving up control of privacy and data security.
Executives including Craig Federighi and Mike Rockwell, who led the Vision Pro headset project, are steering the Siri rebuild under an internal effort known as Glenwood.
How Investors Are Reacting
Shares of both companies moved slightly higher on the news Wednesday. Apple gained less than 1% to $271.70, while Alphabet rose as much as 3.2% to $286.42, reflecting optimism that the deal could accelerate Apple’s AI rollout after months of lagging behind rivals like Microsoft and OpenAI.
The partnership would give Apple access to one of the most advanced large language models available. Google’s Gemini 2.5 Pro currently ranks near the top of industry benchmarks for reasoning and contextual understanding, outpacing most competitors.
What It Means for Apple’s AI Strategy
For Apple, the move marks a clear acknowledgment that its in-house AI efforts are still catching up. On the company’s last earnings call, CEO Tim Cook said users can expect “additional chatbot integrations” within Siri, beyond the existing ChatGPT option.
Industry analysts view the partnership as a pragmatic move rather than a surrender. Apple gains time to refine its own models while still keeping pace with the market’s rapid AI evolution.
If the agreement closes, it could mark one of the largest annual AI licensing deals to date and a sign that Apple is finally ready to put Siri back at the center of its AI strategy.
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