{“title”:”Apple Dumps OpenAI for Google Gemini in Siri Overhaul”,”body”:”At a Glance
– Apple will use Google’s Gemini AI to power the next version of Siri, launching later this year
– The move follows months of speculation and ends Apple’s reported flirtation with OpenAI
– Google could receive up to $1 billion annually under the partnership
– Apple Intelligence will still run on-device while Gemini handles cloud-based queries
Why it matters: iPhone users will get a smarter Siri after years of lagging behind competitors, while Google gains a massive new revenue stream and tighter integration into Apple’s ecosystem.
Apple has officially chosen Google’s Gemini artificial intelligence to breathe new life into Siri, marking a dramatic pivot away from OpenAI and cementing a deepening alliance between two Silicon Valley giants.
The iPhone maker confirmed the partnership in a joint statement Monday, ending months of speculation about which AI platform would anchor Siri’s biggest upgrade in years. The new Siri experience will debut later in 2025.
## The $1 Billion Bet
Financial terms remain undisclosed, but a November report indicated Apple would pay Google $1 billion per year for access to Gemini’s capabilities. The deal represents a rare reversal in the tech industry’s AI partnerships, with Apple turning to its historical rival in search after reportedly struggling to build competitive AI models internally.
“After careful evaluation, Apple determined that Google’s AI technology provides the most capable foundation for Apple Foundation Models and is excited about the innovative new experiences it will unlock for Apple users,” the companies said in their statement.
Apple Intelligence, the company’s broader AI initiative, will continue operating on-device and through Apple’s Private Cloud Compute infrastructure. Gemini will handle cloud-based queries that require more processing power, while Apple maintains its privacy-first approach to user data.
## A Strategic Reversal
The decision represents a significant strategic shift for Apple, which had been working with OpenAI to power Apple Intelligence features launched in 2024. Despite those efforts, Siri’s initial performance under the new system disappointed early testers, though subsequent updates improved its usefulness.
Google declined to comment beyond the joint statement. Apple did not respond to requests for additional information.
The partnership extends an already lucrative relationship between the companies. Court documents from the Department of Justice’s antitrust trial against Google revealed the search giant paid Apple $20 billion in 2022 to remain the default search engine across Apple devices. Now the cash flow reverses, with Apple paying Google for AI capabilities.
## Market Impact
For Google, landing Apple’s AI business provides both revenue and strategic advantage. The release of Gemini 3 reportedly triggered a “code red” response at OpenAI, highlighting the competitive pressure in the AI assistant market.
Apple’s choice of Gemini over OpenAI’s ChatGPT technology signals confidence in Google’s AI progress. The search giant has rapidly improved its AI offerings, with Gemini emerging as a leading competitor to OpenAI’s models.
The deal also highlights Apple’s continued challenges in developing foundational AI technologies. Reports indicated the company’s efforts to build its own large language models had encountered difficulties, leading to the decision to partner rather than build entirely in-house.
## What Users Can Expect
iPhone and iPad users will see the most significant Siri improvements later this year when the Gemini-powered version launches. The upgrade promises more natural conversations and better understanding of complex queries.
Apple maintains that user privacy remains paramount. The company emphasized that its privacy standards will stay in place even with Google’s AI handling certain cloud-based operations.
The timing proves crucial for Apple, which has faced criticism for falling behind in the AI race despite being one of the world’s most valuable companies. Competitors including Google, Microsoft, and Samsung have aggressively integrated AI features into their products over the past two years.
## Broader Implications
This partnership deepens the interdependence between Apple and Google, two companies that compete fiercely in smartphones while cooperating in key areas. The search deal has already faced regulatory scrutiny, and adding AI collaboration may attract additional antitrust attention.
For developers, the Siri improvements could enable new categories of AI-powered applications. Apple’s developer ecosystem stands to benefit from more capable AI tools integrated at the system level.
The move also raises questions about Apple’s long-term AI strategy. While the company continues investing in internal development, partnering with Google suggests Apple recognizes the need for external expertise to remain competitive.
Key Takeaways
– Apple chose Google’s Gemini over OpenAI for Siri’s major AI upgrade launching in 2025
– The deal could cost Apple $1 billion annually but provides access to leading AI technology
– Google strengthens its position in the AI market while gaining a major customer
– iPhone users will get significantly improved Siri capabilities while maintaining Apple’s privacy standards
– The partnership extends an already complex relationship between the tech giants worth tens of billions in search revenue alone”,”meta_description”:”Apple chooses Google’s Gemini AI to power next-generation Siri, ending OpenAI partnership in $1B deal that reshapes the AI assistant landscape for iPhone users.”,”categories”:[“Tech News”,”Breaking News”]}
