Apple could pay Google $1 billion a year to power Siri’s next big upgrade

Apple is on the verge of finalizing a significant agreement with Google, reportedly worth around $1 billion annually, to utilize an advanced AI model with 1.2 trillion parameters. This partnership aims to enhance Siri, the voice assistant, as part of an anticipated update that was first teased during WWDC 2024 but has faced several delays. After a thorough evaluation of various AI options, Apple has opted to collaborate with Google, despite initial considerations for other third-party models, including those from Anthropic. The existing relationship between the two companies, which includes Apple receiving compensation for designating Google as the default search engine on its devices, has likely influenced this decision. Internally referred to as 'Glenwood,' the Siri update is being spearheaded by Mike Rockell, the creator of the Vision Pro headset, alongside Apple’s software engineering head, Craig Federighi. This revamped version of Siri is expected to be introduced with the upcoming iOS 26.4 update, known as 'Linwood.' The Gemini model, which will play a crucial role, is designed to enhance Siri’s capabilities in information synthesis and task execution. Importantly, while Apple will integrate Google's AI model, the company plans to maintain some Siri features powered by its proprietary technology. This collaboration is described as a temporary measure until Apple's own AI models achieve sufficient capability to support the Siri overhaul independently. To safeguard user data, the Gemini model will operate on Apple's Private Cloud Compute servers, keeping it separate from Google's infrastructure. The partnership is intended to remain discreet, with Apple treating Google primarily as a behind-the-scenes technology provider. There are no plans to implement Gemini as a chatbot within Siri at this time. Currently, Siri directs more complex queries to ChatGPT, but options for alternative chatbot responses remain unavailable. Discussions about incorporating Gemini as a chatbot feature in Siri have been ongoing but have not yet been realized. Looking ahead, Apple's models team is reportedly working on developing a cloud-based AI model with a trillion parameters, expected to be ready for consumer use by next year. Executive teams at Apple are optimistic that their in-house model will achieve a performance level comparable to that of Google's Gemini.