A strategic shift in Cupertino: Apple announced that it will integrate Google’s Gemini artificial intelligence model into the core of its AI development, led by the new version of Siri, which is expected to launch later this year. The announcement, delivered in a joint statement by the two companies, marks a dramatic change in direction for Apple, which for years emphasized internal development and a closed ecosystem, and preferred to avoid dependence on core technologies from direct competitors.
According to the announcement, Apple and Google have signed a multi-year agreement under which Apple will use the Gemini model and Google’s cloud computing infrastructure to power advanced AI capabilities on iPhones and additional services. Both companies noted that after an in-depth review of various alternatives, Google’s technology was determined to provide the most advanced foundation for Apple’s AI models and to enable the development of new user experiences.
The move comes amid ongoing delays in the launch of the new Siri, which was first unveiled at Apple’s Worldwide Developers Conference in 2024 but has since been postponed several times. The delay raised doubts among investors and analysts about Apple’s ability to keep pace with the innovation speed of companies such as Google, Microsoft, and leading AI start-ups. According to market assessments, integrating Gemini is intended to shorten development timelines and allow Apple to quickly offer a smarter voice assistant capable of understanding context, conducting complex conversations, and performing more advanced tasks than before.
At the same time, the agreement is seen as a significant achievement for Google, which seeks to position Gemini as the dominant AI model in the market, not only within its own services but also as a platform for leading hardware manufacturers. While Apple already collaborates with OpenAI and integrates ChatGPT into some of its features, the new agreement places Gemini at the center of Apple’s future AI strategy. At this stage, it is unclear how the move will affect the existing partnership with OpenAI, and whether there will be parallel integration of multiple models or a gradual transition to a single central model.
The financial details of the agreement were not disclosed, but previous reports estimated that Apple may pay Google around $1B per year for the use of Gemini. According to those reports, Apple had previously explored partnerships with other AI companies but ultimately chose Google due to its technological maturity and the scale of its infrastructure.
Apple emphasized that even after integrating Gemini, its privacy principles will be preserved. According to the company, AI platforms will operate either directly on the device or in a secure cloud environment, in a way that protects users’ personal data. This is a sensitive issue for Apple, which has built its brand over the years on a promise of strong privacy protection, in contrast to Google’s business model, which relies heavily on advertising and data analysis.
In the financial markets, the announcement was met with relative restraint. Shares of Apple and Google recorded only modest gains following the news. However, investors expect the new capabilities to help Apple reignite iPhone sales, which have experienced volatility in recent years. According to analysts’ forecasts, Apple is expected to report approximately 11 percent growth in iPhone sales in the coming quarter, and total profits of more than $39B.