According to Android Police, Apple is reportedly working with Google to create a custom Gemini model that will power an upcoming intelligence boost for Siri. The partnership, revealed through Bloomberg’s Mark Gurman, involves Apple paying Google to build a specialized AI model that will run on Apple’s Private Cloud Compute servers rather than Google’s infrastructure. The integration is expected to debut in the iOS 26.4 firmware release, likely arriving in the first or second quarter of 2025. Apple had been in talks with both Google and Amazon since last year about AI partnerships, ultimately choosing Google’s Gemini over Amazon-backed Anthropic, possibly due to the preexisting Google Search integration in Safari. This strategic move suggests Apple is taking a pragmatic approach to catching up in the AI race.
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The Unspoken Revenue Model
This arrangement represents a fascinating departure from Apple’s typical walled-garden approach. Rather than building everything in-house, Apple appears to be acknowledging that catching up in generative AI requires strategic partnerships. The financial dynamics are particularly interesting – Apple paying Google for access to AI capabilities reverses the traditional relationship where Google pays Apple billions annually for default search placement in Safari. This suggests Apple views AI capabilities as sufficiently critical to justify becoming the customer rather than the platform owner in this specific domain. The Private Cloud Compute infrastructure becomes the crucial middle layer that allows Apple to maintain control over user data while leveraging Google’s AI expertise.
Why This Makes Business Sense
From a strategic perspective, this move allows Apple to accelerate its AI capabilities without the multi-year development timeline required to build competitive foundation models from scratch. The timing is critical – with competitors like Samsung already integrating Google’s Gemini features directly into their Galaxy AI suite, Apple risks falling behind in the increasingly AI-driven smartphone market. By opting for a custom model running on their own servers, Apple gets the best of both worlds: access to cutting-edge AI technology while maintaining their privacy-first branding. The decision to keep the partnership low-profile also aligns with Apple’s brand identity – they can deliver improved functionality without appearing dependent on a competitor’s technology.
The Competitive Landscape Reshuffle
This development reveals how the AI wars are forcing unusual alliances across the tech industry. Google, which competes with Apple in smartphones, becomes a supplier to its rival. Amazon, through its Anthropic investment, becomes the losing bidder in this particular deal. For consumers, the practical implication is that Siri should become significantly more capable at handling complex queries and general knowledge questions, addressing one of the assistant’s longstanding weaknesses. However, unlike Samsung’s more overt Galaxy AI integration, Apple users likely won’t see explicit Gemini branding or features, maintaining the illusion of an Apple-first experience while benefiting from Google’s AI research investments.
What This Means for Apple’s AI Future
This partnership shouldn’t be viewed as Apple abandoning its own AI development efforts. Rather, it’s a strategic bridge while Apple continues developing its proprietary models. The company’s research publications and hiring patterns suggest significant internal AI investment continues. The Google partnership buys them time and prevents falling further behind competitors. Looking ahead, we might see Apple gradually replace Google’s components with their own technology as it matures, similar to their approach with chip development. For now, this pragmatic partnership demonstrates that even Apple recognizes some technology gaps are too wide to bridge alone in the current AI acceleration cycle.
