Apple (AAPL) Stock: Company Signs $1 Billion Annual Deal with Google for Siri AI Technology
TLDR
- Apple will pay Google around $1 billion yearly for a 1.2 trillion parameter AI model to power Siri’s complete redesign launching spring 2026.
- Google’s Gemini model will run on Apple’s servers to protect user privacy while handling Siri’s summarizer and planner functions.
- Apple tested ChatGPT, Claude, and Gemini before choosing Google as a temporary solution until its own 1 trillion parameter model is ready.
- Both stocks jumped on the news, with Apple gaining less than 1% to $271.70 and Alphabet rising as much as 3.2% to $286.42.
- The partnership won’t be publicly promoted and is separate from earlier chatbot integration talks that fell through in 2024.
Apple is finalizing a deal to pay Google approximately $1 billion annually for access to cutting-edge artificial intelligence technology. The partnership will power a complete overhaul of Siri scheduled for spring 2026.
The agreement gives Apple access to Google’s 1.2 trillion parameter Gemini model. This dwarfs the 150 billion parameter model currently powering Apple Intelligence.
Apple evaluated multiple AI providers before making its decision. The company tested models from OpenAI, Anthropic, and Google throughout the year before selecting Google’s technology.
The Gemini model will handle critical voice assistant functions. It will power Siri’s ability to summarize information and plan complex tasks.
Privacy remains a priority in the partnership design. The Google model will run entirely on Apple’s Private Cloud Compute servers, keeping user data isolated from Google’s infrastructure.
New Siri Launch Details
The revamped Siri will arrive with iOS 26.4 next spring. Apple calls the project Linwood internally, while the broader Siri fix initiative is code-named Glenwood.
Vision Pro creator Mike Rockwell and software chief Craig Federighi lead the overhaul. The project follows a leadership shakeup after CEO Tim Cook lost confidence in AI head John Giannandrea’s execution.
Apple won’t advertise Google’s involvement to consumers. The company plans to keep Google as a behind-the-scenes supplier, unlike their public Safari search partnership.
The deal differs from earlier chatbot integration discussions. Those talks nearly succeeded in 2024 and early 2025 but ultimately collapsed.
Apple’s Long-Term AI Strategy
Apple treats this partnership as a bridge to proprietary technology. The company is developing its own 1 trillion parameter model for potential launch next year.
Apple executives believe they can match Google’s quality level. However, Google continues improving Gemini, with version 2.5 Pro currently leading large language model rankings.
The company faces AI talent challenges. Apple has lost key personnel, including its models team head, but remains committed to in-house development.
Siri has trailed competitors for years in handling complex requests. Google Assistant and Alexa have historically performed better with multi-step commands and third-party app integration.
Market Response and Deal Structure
Both stocks rallied on Wednesday following the announcement. Apple shares climbed less than 1% to $271.70 while Alphabet jumped as much as 3.2% to $286.42.
The partnership excludes Google AI search from Apple’s operating systems. Some Siri features will continue using Apple’s proprietary models.
CEO Tim Cook recently stated Siri might eventually support additional chatbots beyond ChatGPT. Apple announced in March that Siri AI improvements would be delayed until 2026.
China requires a different approach for Apple’s AI plans. Google’s ban in China means the localized Siri version won’t use Gemini.
Apple will use in-house models and an Alibaba-developed content filter for China. The company is also exploring a Baidu partnership for Chinese AI offerings.
Apple has allocated server hardware to support the Google model. The company is pushing to expand Apple Intelligence and the new Siri globally.