According to CNET, Apple is planning to use a custom version of Google’s Gemini AI to power the next generation of its Siri virtual assistant, targeting a spring 2026 launch based on a Bloomberg report from Mark Gurman. The company was reportedly evaluating whether to use Google or AI competitor Anthropic for the next version of Siri, with Google offering a better financial deal than Anthropic’s $1.5 billion annual cost. This custom Gemini model would run on Apple’s private cloud compute servers while Apple’s own models handle on-device personal data, and Apple reportedly won’t highlight Google’s involvement in marketing. This development signals Apple’s continued reliance on partnerships rather than building competitive AI internally.
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The $20 Billion Relationship Extends to AI
This reported deal represents far more than a simple technology partnership—it’s the extension of Apple’s most lucrative business relationship into the most critical technology battleground of our time. Google already pays Apple an estimated $20 billion annually to remain the default search engine on Apple devices, a revenue stream that has become increasingly controversial amid ongoing antitrust scrutiny. By bringing Google’s AI into the core of Apple’s ecosystem through Siri, Apple is effectively doubling down on a partnership that generates massive revenue while potentially limiting its own competitive positioning in AI.
Partnerships Over Platforms: Apple’s AI Conundrum
What’s most revealing about this development is Apple’s apparent strategic decision to treat AI as a feature rather than a platform. Unlike Microsoft’s deep integration with OpenAI or Google’s first-party AI development, Apple appears content to outsource the most advanced AI capabilities while maintaining control over the user experience and privacy narrative. This approach preserves Apple’s margins—they avoid the massive R&D and infrastructure costs of building competitive foundation models—but potentially cedes long-term strategic ground in what many consider the defining technology of the next decade. The Apple Intelligence announcement earlier this year already signaled this hybrid approach, but relying on Google for core assistant functionality takes it to another level entirely.
Antitrust Implications Multiply
The antitrust dimensions of this potential deal cannot be overstated. The Department of Justice’s case against Google already centers on the search default arrangement with Apple, with the judge ruling that Google was operating an illegal monopoly. Adding AI to this relationship creates an even more complex competitive landscape. If Apple’s virtual assistant—one of the most used AI interfaces in the world—becomes powered by Google’s technology, it could further entrench Google’s position in the AI ecosystem. This comes at a time when regulators are increasingly scrutinizing big tech partnerships that might limit competition.
The Financial Calculus Behind Outsourcing AI
From a pure numbers perspective, Apple’s decision makes short-term financial sense. Building competitive foundation models requires billions in R&D, specialized talent acquisition, and massive computing infrastructure. The reported $1.5 billion annual cost for Anthropic—likely the ceiling for what Apple would pay Google—pales in comparison to the development costs Apple would incur to build something competitive with Gemini or GPT. More importantly, it allows Apple to focus its engineering resources on integration, privacy, and user experience—areas where Apple traditionally excels—while avoiding the AI arms race that’s consuming resources at Google, Microsoft, and Amazon.
The Long-Term Competitive Risk
The strategic risk for Apple lies in becoming dependent on competitors for core technology. While this approach worked well for search—where Apple collected revenue without significant competitive threat—AI is fundamentally different. AI capabilities are increasingly becoming the primary differentiator in consumer technology, from smartphones to computers to wearables. If Apple’s most advanced AI features are powered by Google, it becomes harder to argue that Apple devices offer a superior intelligent experience. This could eventually undermine Apple’s premium positioning, particularly as competitors like Samsung deepen their own AI integrations.
What This Means for the AI Ecosystem
This development signals that even the most valuable company in the world recognizes the difficulty of catching up in the foundation model race. It suggests we may see more “coopetition” arrangements between tech giants, where companies partner in areas where they can’t compete effectively while maintaining competition in others. For consumers, the immediate benefit could be better AI features sooner, but the long-term concern is reduced competition and choice. As Apple’s own AI features remain limited to on-device tasks, this Google partnership would fill the gap for more complex cloud-based AI—but at the cost of strategic independence.
