According to CNET, Apple is planning to use a custom version of Google’s Gemini AI model to power the next generation of its Siri virtual assistant, with implementation scheduled for spring 2026. The report indicates Apple was evaluating both Google and AI competitor Anthropic for the partnership, with Google offering a better financial deal than Anthropic’s reported $1.5 billion annual cost. The custom Gemini model will operate on Apple’s private cloud compute servers while Apple’s own models handle on-device personal data processing. Notably, Apple reportedly won’t highlight Google’s involvement in its marketing materials, continuing a pattern of downplaying third-party partnerships in its ecosystem.
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The Revenue-First AI Strategy
This move represents Apple’s continued preference for revenue-sharing partnerships over massive internal investment in emerging technologies. Rather than spending billions to develop competitive AI models from scratch, Apple is leveraging its platform dominance to extract value from partners who need access to its user base. The existing $20 billion annual payment from Google for search default status now extends into AI, creating a powerful revenue stream that offsets development costs while maintaining Apple’s premium brand positioning. This approach allows Apple to focus resources on hardware integration and user experience while partners bear the massive computational and research costs of foundation model development.
The Platform Power Play
Apple’s decision to keep Google’s involvement quiet in marketing speaks volumes about its strategic positioning. By presenting AI capabilities as “Apple Intelligence” while relying on third-party infrastructure, the company maintains the illusion of vertical integration that has defined its brand for decades. This approach mirrors how Apple initially handled mapping and voice recognition—partnering until it could build competitive alternatives. The timing is particularly telling as Apple faces increasing pressure from investors and consumers to demonstrate AI competency following the explosive growth of ChatGPT and competing AI assistants from Google, Microsoft, and Amazon.
Playing Catch-Up While Protecting Margins
Apple’s delayed AI entry reflects a calculated risk-reward assessment common in its playbook. The company often enters markets later than competitors but leverages its integrated ecosystem to deliver superior user experiences. However, the AI landscape presents unique challenges where first-mover advantages in model training and data collection create significant barriers. By partnering with Google, Apple gains immediate access to cutting-edge AI capabilities without the years of development lag, while the 2026 timeline suggests this is more about getting the integration right than rushing to market. The arrangement also protects Apple’s industry-leading profit margins by avoiding the massive capital expenditure required for foundation model development.
Antitrust Implications Deepen
This partnership significantly complicates the regulatory landscape for both companies. The Department of Justice’s ongoing antitrust case against Google already focuses heavily on the search default arrangement, and extending this partnership into AI could attract additional scrutiny. Regulators may view this as further entrenchment of Big Tech dominance through exclusive partnerships that limit competition. For Apple, the arrangement raises questions about whether the company is using its gatekeeper position to extract value rather than innovate, potentially undermining its traditional defense of creating the best user experience through controlled integration.
The Bridge to Independence
Looking beyond 2026, this partnership likely serves as a bridge strategy while Apple continues developing its own AI capabilities. The company’s pattern with key technologies—from processors to modems—shows a consistent move from dependency to independence. The on-device AI models mentioned in the report suggest Apple is already building the foundation for eventual self-sufficiency. The Google partnership buys crucial time and provides real-world usage data to inform Apple’s own development efforts. However, the success of this strategy depends on whether Apple can close the AI gap fast enough to avoid permanent dependency on external providers in a technology that’s becoming increasingly central to the user experience.
