Apple has made its choice. The company will team up with Google in a multi-year deal that puts Gemini at the heart of Apple's AI strategy, including a significant Siri overhaul expected to arrive this year.
Both companies confirmed the partnership in a joint announcement, expressing enthusiasm about what the collaboration could bring to Apple users.
Why Google won the deal?
Before settling on Google, Apple explored options with other major AI companies including OpenAI and Anthropic. Financial terms remain undisclosed, but industry reports suggest Apple may be spending approximately $1 billion per year for customized Gemini technology.
The agreement allows Apple to work with multiple AI providers simultaneously. This flexibility matters because Apple already integrated ChatGPT into its devices through a separate arrangement with OpenAI.
Breaking with tradition
This move represents unusual territory for Apple. The company built its reputation on controlling everything from chips to software. Relying on an outside partner for core AI technology signals a new chapter.
Industry observers note that Apple appears to be acknowledging its homegrown AI simply could not match what Google has built with Gemini, at least not quickly enough. While this represents smart business thinking, it also means Apple is playing by different rules than before.
The road to this partnership
Apple entered the AI race later than its rivals. When Apple Intelligence launched in 2024, it brought useful features like improved photo search and notification summaries. The company emphasized privacy by keeping most AI processing on the device itself.
However, users expecting dramatic improvements were left underwhelmed. The experience felt understated compared to the capabilities of ChatGPT or Google's own assistant.
Siri improvements kept getting pushed back. Leadership changes followed, with Apple's top AI executive departing last December. Now, the company says an upgraded Siri will finally arrive in spring.
Legal complications
Regulators will likely pay close attention to this deal. The two companies already share a controversial business relationship.
A US court determined in 2024 that Google maintained an illegal monopoly in search by paying device makers for default placement. Google spent over $26 billion in 2021 on these arrangements with various companies including Apple. Over a two-year period, Apple alone received roughly $38 billion for making Google the default search engine on iPhones.
New restrictions now prevent Google from signing exclusive deals lasting longer than one year. The AI partnership appears structured to comply with these requirements.
British regulators have also weighed in, identifying both companies as dominant forces that together control the mobile market in the UK.
What changes for users?
Apple promises that privacy protections will remain intact. AI processing will still happen on Apple devices and secure cloud infrastructure.
Analysts suggest that while AI features may not drive iPhone purchases today, consumer expectations are shifting. As AI tools become more common, demand for smarter assistants will grow.
For users who have grown tired of Siri's limitations, this partnership offers hope that meaningful improvements are finally on the way.
