Apple will launch its AI-powered Siri upgrade later this year, powered by Google’s Gemini models, the companies announced Monday.
At a Glance
- Apple and Google signed a multi-year deal to base Apple Foundation Models on Gemini
- The new “LLM Siri” will launch in 2024 using Google cloud technology
- Apple will keep data processing on its Private Cloud Compute platform
- Google stock surged past $4 trillion market value on the news
The collaboration marks a major shift for Apple, which has struggled to deliver its promised AI features. Under the agreement, Google will provide both the Gemini models and cloud infrastructure for Apple’s AI features, while Apple maintains control over data processing through its secure Private Cloud Compute system.
The $1 Billion Deal
According to News Of Fort Worth‘s reporting, Apple will pay Google approximately $1 billion annually for access to a custom Gemini model. The tech giant evaluated competing models from OpenAI and Anthropic before selecting Google’s technology.
The new system, potentially called “World Knowledge Answers,” will create a search experience across Apple devices and summarize web searches. The integration may extend to Safari and Spotlight search functions.
Market Impact
Google’s stock price reacted immediately to the announcement, pushing the company past the $4 trillion market value benchmark. The search giant achieved this milestone just four months after reaching $3 trillion, making it the fourth company to breach the $4 trillion level.
The partnership strengthens Google’s position in the competitive AI landscape. In November, Google unveiled its latest Gemini model to positive reception, with many users praising it as superior to OpenAI’s ChatGPT. The company is also developing tensor processing units to challenge Nvidia’s dominance in AI chip technology.
Apple’s AI Struggles
Apple’s AI initiatives have faced significant setbacks. The company announced Apple Intelligence and its AI-enhanced Siri in 2024, with the “LLM Siri” initially scheduled for early 2025 release. Apple even launched advertising campaigns promoting the new iPhone’s AI Siri capabilities before delaying the launch.
The postponement disappointed consumers and reportedly created internal divisions within Apple. The fallout included executive changes and a federal lawsuit alleging false advertising.
CEO Tim Cook acknowledged Apple’s position behind competitors in AI development during a rare all-hands meeting in August. “Apple must do this. Apple will do this. This is sort of ours to grab,” Cook told employees, describing the AI revolution as “as big or bigger” than the internet’s impact.
Craig Federighi, Apple’s senior vice president of software engineering, promised significant improvements to the delayed LLM Siri, claiming it would receive “a much bigger upgrade than we envisioned.”
What’s Next
Apple’s success in the AI space now depends on the performance and reception of the Google-powered LLM Siri, expected to launch later this year. The partnership with Google, currently one of the most prominent names in AI technology, represents Apple’s attempt to quickly close the gap with competitors.
The collaboration allows Apple to leverage Google’s proven AI technology while maintaining its commitment to user privacy through Private Cloud Compute. This approach lets Apple offer advanced AI features without compromising its privacy-focused brand identity.
Apple’s AI future remains uncertain given its track record of overpromising on AI features. However, the Google partnership provides the company with established technology to power its next-generation Siri and other AI initiatives.
Key Takeaways
- Apple chose Google Gemini over OpenAI and Anthropic models for its AI foundation
- The $1 billion annual deal gives Apple access to Google’s cloud infrastructure
- Google stock surged past $4 trillion valuation on the partnership news
- Apple maintains data processing through its Private Cloud Compute system
- The AI-enhanced Siri launch is critical for Apple’s competitive position
