TL;DR
Apple and Google announced a multi-year deal that will let Apple Foundation Models build on Google’s Gemini models, with some payments tied to Google’s broader $20 billion default search arrangement. The companies say Apple Intelligence will continue to run on devices and in Apple’s Private Cloud Compute while upholding Apple’s privacy commitments.
What happened
Apple and Google revealed a multi-year partnership that will integrate Google’s Gemini models as a foundation for Apple Foundation Models. The announcement did not disclose the contractual details, though earlier reporting suggested Apple might pay roughly $1 billion annually for access. The joint statement emphasized that Apple Intelligence will keep operating on Apple devices and through Apple’s Private Cloud Compute framework, and that privacy safeguards remain in place. The move follows criticism and internal difficulties with Apple’s in-house machine learning efforts, including staff departures and missed milestones. An updated, Gemini-infused version of Apple Intelligence is expected to appear later this year. The arrangement also ties into Apple’s broader relationship with Google: the deal will return a small portion of the roughly $20 billion Google pays to be the iPhone’s default search provider. Industry observers say the pact could shift dynamics among major AI providers, including OpenAI, which previously partnered with Apple to bolster Siri.
Why it matters
- A Google-powered foundation could materially change Siri and Apple Intelligence capabilities on iPhones and other Apple devices.
- The deal highlights privacy and on-device computing as selling points Apple plans to preserve while adopting third-party models.
- It reshapes competitive positioning among large AI providers and may weaken prior partners’ roles in Apple's ecosystem.
- Financial links to Google’s default search payments raise questions about how tech partnerships and revenues are being reallocated.
Key facts
- Apple and Google announced a multi-year agreement to base Apple Foundation Models on Google’s Gemini models.
- The companies said Apple Intelligence will continue to run on devices and Apple’s Private Cloud Compute system.
- Terms of the agreement were not disclosed by the companies in the announcement.
- Bloomberg previously reported Apple planned to pay about $1 billion per year for Google’s AI technology.
- The statement said the deal will return a small portion of the roughly $20 billion Google pays annually to be Apple’s default search provider.
- Apple’s in-house machine learning efforts have faced setbacks, including staff departures and unmet promises, according to the source.
- An updated, Gemini-flavored version of Apple Intelligence is expected later in the year.
- The partnership is seen as a possible setback for OpenAI, which was integrated into Siri in 2024.
What to watch next
- Timing and specifics of the updated Apple Intelligence rollout later this year (confirmed in the source).
- Exact financial and contractual terms of the Apple–Google arrangement (not disclosed in the source).
- How this deal affects Apple’s relationship with OpenAI and other AI partners (not confirmed in the source).
Quick glossary
- Foundation model: A large AI model trained on broad data that can be adapted for many downstream tasks and applications.
- On-device inference: Running AI model computations directly on a user’s device rather than in the cloud, which can reduce latency and exposure of private data.
- Private Cloud Compute: Apple’s system for processing AI queries in a way the company says is designed to protect user data while leveraging cloud resources.
- Gemini: Google’s family of large AI models used as a base for advanced language and multimodal capabilities.
- Siri: Apple’s voice assistant technology that runs on iPhones, iPads and other Apple devices.
Reader FAQ
Will Apple stop running AI on devices?
No. The companies said Apple Intelligence will continue to operate on Apple devices and via Apple’s Private Cloud Compute.
How much is Apple paying Google for this technology?
The companies did not disclose terms. Bloomberg previously reported Apple might pay about $1 billion per year.
When will the Gemini-powered Apple Intelligence arrive?
The source says an updated, Gemini-flavored version is expected later this year.
Does this mean OpenAI is out of Apple’s ecosystem?
Not confirmed in the source.
AI + ML Apple hopes to save Siri from laughingstock status with infusion of Google Gemini Partnership between behemoths raises questions about OpenAI's place at the iTable Thomas Claburn Mon 12 Jan 2026…
Sources
- Apple hopes to save Siri from laughingstock status with infusion of Google Gemini
- Apple picks Google's Gemini to run AI-powered Siri coming …
- Apple, Google strike Gemini deal for revamped Siri in …
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