Apple Nears Google Gemini AI Deal

Apple Inc. is reportedly nearing a $1 billion annual deal with Alphabet Inc. to license its 1.2 trillion-parameter Gemini AI model. This partnership aims to power major upgrades to Siri, enhancing its ability to understand context, summarize, plan tasks, and handle multi-step commands. The revamped Siri, internally code-named Linwood, is expected to debut with iOS 26.4 next spring. This move is a temporary solution as Apple Inc. develops its own 1 trillion-parameter cloud model, anticipated by late 2026. The Gemini model will run on Apple Inc.'s Private Cloud Compute servers to ensure user data privacy. Mike Rockwell and Craig Federighi are overseeing the Siri rebuild, known as Project Glenwood. Apple Inc. considered other AI models like ChatGPT and Claude (AI model) before selecting Alphabet Inc.'s Gemini. This collaboration underscores Apple Inc.'s acknowledgment of lagging in the AI race and its strategic effort to quickly enhance Siri's intelligence while continuing long-term investment in its internal AI capabilities. In regions like China, Apple Inc. plans to rely on in-house models and local partnerships with entities such as Baidu and Alibaba Group.