Apple is reportedly paying Google $1 billion a year for Siri’s Gemini Custom AI model

Apple signs a contract with Google to develop a customized product AI Gemini Model to test the next version of your virtual assistant Siri until spring 2026, second a Nov. 2 report by Mark Gurman of Bloomberg. A later report on Wednesday indicated that Apple would do so Pay a billion dollars a year for this new model with 1,200 billion parameters.

Apple has reportedly considered using Google or its AI competitor The Anthropocene for the next version of Siri. Even if Apple paid Google $1 billion a year, the cost would be $1.5 billion a year, according to Anthropic. another Bloomberg report.

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This custom Gemini model runs on Apple’s private cloud computing servers. Apple models will continue to run on personal computing devices, while Gemini will run on servers for more complex tasks. According to Bloomberg, Apple has no plans to highlight Google’s involvement in the company’s marketing.

Google declined to comment. Apple and Anthropic did not respond to requests for comment.

Because Apple doesn’t build its own AI

While major tech companies are moving towards artificial intelligence, Apple has largely been left behind. The technology company has been slow to adopt technology and have failed to develop competing AI models. Instead, it turned to companies like OpenAI, the maker of ChatGPT. Helps add generative features. along with existing Apple systems.

However, the promise of one thing is real. intermediary Apple’s intelligence did not appear although it has gotten better. Even Apple CEO Tim Cook do not rule out the possibility of acquiring an artificial intelligence company.

The reason Apple hasn’t made significant progress in artificial intelligence despite being one of the richest companies in the world likely has to do with prioritization. Apple as a company focuses on the privacy of its customers. Since data-intensive AI systems rely on cloud servers, Apple is more interested in local AI models that can run on a device. The problem is that AI is computationally intensive and smaller local models simply cannot compete with server stacks. Even basic modeling training requires a lot of specialized knowledge and effort. Although OpenAI did not provide exact numbers, Estimates Training costs for GPT-5 exceed $1 billion. AI researchers also earn high salaries and are happy to publish their research publicly. For Apple, it fits better with Apple’s culture to work with existing AI companies to better integrate their technology.

Apple also has a close relationship with Google. The search giant pays Apple 20 billion dollars a year to remain the default search engine on Apple devices. It’s a relationship that makes Apple money and prevents the company from creating a competitor to Google Search. a claim that Apple denies. This agreement was a key element of the Justice Department’s lawsuit against Google, in which a The judge has decided that the company exercised an illegal monopoly.

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Although Apple has lagged behind in the AI ​​field, it is doing well financially. Last month it passed one Market capitalization of 4 trillion dollars.

Tech Insider (NewForTech Editorial Team)
Tech Insider (NewForTech Editorial Team)https://newfortech.com
Tech Insider is NewForTech’s in-house editorial team focusing on tech news, security, AI, opinions and technology trends

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