Apple to Pay $1B Yearly for Google’s 1.2T AI to Boost Siri

In a move that could redefine Apple’s artificial intelligence strategy, the iPhone maker is preparing to pay around $1 billion a year to use Google’s 1.2 trillion-parameter AI model, marking one of the biggest cross-tech collaborations in recent years.

According to people familiar with the deal, Apple and Google are in the final stages of an agreement that will give Apple access to Google’s ultra-powerful Gemini system, which will form the backbone of Siri’s long-promised transformation. The upgraded Siri is expected to debut next spring, bringing smarter and more contextual responses powered by the new model.

The partnership signals a shift for Apple, which has traditionally relied on in-house innovation. After testing several leading AI systems — including OpenAI’s ChatGPT and Anthropic’s Claude — Apple settled on Google’s Gemini as an interim powerhouse while it develops its own next-generation AI.

Under the arrangement, Gemini will handle Siri’s summarizer and planner functions, enabling it to understand context and perform complex, multi-step tasks. Apple, however, will continue using its Private Cloud Compute servers, ensuring user data remains secure and separate from Google’s systems.

Internally codenamed “Glenwood,” the initiative is led by Mike Rockwell and Craig Federighi, key figures behind Apple’s Vision Pro and software teams. The new Siri, known internally as “Linwood,” is planned for release with iOS 26.4.

While Apple won’t publicly promote the partnership, sources say the deal differs from the well-known Safari search engine arrangement, with Google playing a behind-the-scenes role rather than a visible partner.

The move underscores Apple’s acknowledgment that it trails in the AI race. The company’s current cloud-based model operates at just 150 billion parameters, a fraction of the power Gemini offers.

To close that gap, Apple’s own AI division is reportedly working on a 1 trillion-parameter model that could debut next year. But catching up won’t be easy — Google’s Gemini 2.5 Pro still leads the global AI performance charts.

In China, where Google services are banned, Apple plans to use in-house models and local technology filters developed by Alibaba, and it is also exploring options with Baidu to adapt its upcoming “Apple Intelligence” features for the Chinese market.

As the rivalry between Big Tech giants intensifies, Apple’s quiet but bold partnership with Google marks a rare alignment of two competitors — and a major step in Siri’s evolution from a basic assistant to a true AI companion.