Apple Bets Big On Google Gemini For Siri, Apple Intelligence With Multi-Billion Dollar AI Deal, Steers Away From Open AI But Elon Musk Has A Problem With It

Apple and Google just shook up the tech world with a massive new AI partnership. Google’s Gemini will soon power the next version of Siri on the iPhone, and Apple agreed to pay about $1 billion a year to make it happen.

This isn’t just a simple update or a side project; it’s a significant shift for Apple, and it may even put their relationship with OpenAI in jeopardy.

Is it going to be iOS vs Android? Here’s what you need to know about Apple and Google AI Deal

This partnership goes deeper than anything the two companies have done before. Instead of just using Gemini for backup or handling extra queries, Apple plans to build its whole AI strategy around Google’s technology.

That means the next wave of “Apple Intelligence” features, including a smarter, more personal Siri, will be built on top of Gemini’s foundation and Google’s cloud.

Both companies put out a joint statement about the deal: “Apple and Google have entered into a multi-year collaboration under which the next generation of Apple Foundation Models will be based on Google’s Gemini models and cloud technology.

These models will help power future Apple Intelligence features, including a more personalised Siri coming this year.

Apple and Google have always had a complicated relationship. Google already pays Apple more than $20 billion a year to be the default search engine on iPhones, so it’s not like they’re strangers. However, with the Gemini 3 update, Google appears to have pulled ahead of ChatGPT in the AI race, at least for now.

What does this deal mean for Siri and Apple’s AI?

Apple will use Google’s huge 1.2-trillion parameter AI model to supercharge Siri and other features. The plan is for Apple to license the basic Gemini tech and then customise it for iPhones, iPads, and Macs.

In the AI world, there’s a “pretrained” model, basically a big brain already taught how to understand and generate language and a second phase where Apple can shape the model’s personality. Google will likely hand over the pretrained version, and Apple will do the rest in-house.

Privacy is always a big concern with these deals, and Apple says its standards aren’t changing. The new “Apple Intelligence” features will still run on Apple devices and through their Private Cloud Compute (PCC) system. The company insists that personal data sent to the cloud stays private, but the user can see it.

If you’re waiting for the new Siri, you’ve got some time. It’s expected with iOS 26.4, likely rolling out in March or April 2026. After the announcement, Google’s stock briefly soared past a $4 trillion market cap. This deal is big, and it’s only the beginning.

Why Apple needs Google’s help

Apple has participated in the AI revolution that shook Wall Street rather passively after ChatGPT was introduced in late 2022.

Even as other companies such as Amazon, Meta, and Microsoft were pouring billions of dollars into AI infrastructure and products, Apple was having difficulties in working through its AI promises.

The company had planned a massive Siri improvement in its WWDC 2024 keynote, but needed to postpone the features. Apple admitted that it would require more time than expected to provide these features, moving the date to 2026.

The 1.2 trillion parameter model of Google is large and powerful compared to the AI model of Apple, which implies that the redesigned Siri can be much more operational than what Apple could create on its own in the same period of time.

Elon Musk is the loudest critic of the Apple-Google AI Deal

Elon Musk is one of the most vocal critics, who called the alliance an unreasonable concentration of power in Google.

Musk posted the statement on X soon after Google had verified a multi-year deal with Apple to deliver Gemini models with cloud infrastructure to offer future Apple Intelligence functions. In a form of a direct reply to the Google post, Musk said that the acquisition strengthens the domination of Google.

This appears to be an unrealistic power concentration in Google, seeing that they also possess Android and Chrome, Musk wrote.

This criticism comes at an opportune time for the two businesses.

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