Apple nears deal to pay Google $1B annually to power new Siri, report says

Apple is on the verge of finalizing a monumental agreement with Google, which would see the tech giant receiving approximately $1 billion each year. This substantial investment is aimed at integrating a customized version of Google's Gemini AI model to enhance the functionality of Siri, as reported by Bloomberg. This strategic pivot marks a significant shift for Apple, a company renowned for its commitment to developing proprietary technology. The collaboration with Google is intended as a temporary measure, allowing Apple to utilize Google's advanced capabilities until their own artificial intelligence can support a range of new features for Siri. The Gemini AI model boasts an impressive 1.2 trillion parameters, a metric that illustrates its advanced complexity and functionality. In comparison, Apple's current AI infrastructure operates with only 150 billion parameters, making Google's offering nearly eight times more sophisticated. Earlier this year, Apple also evaluated AI models from OpenAI and Anthropic. After conducting tests with all three contenders, Apple has opted to proceed with Google's technology. According to Bloomberg's report, the revamped Siri is anticipated to debut next spring. However, with several months until the launch, there remains a possibility that the plans for the update could evolve.