Apple nears deal to pay Google roughly $1 billion a year for Siri AI model

Core Insights - Apple Inc. is planning to utilize a 1.2 trillion parameter AI model from Google to enhance its Siri voice assistant, marking a significant shift in its AI strategy [1][3][11] Partnership Details - Apple is finalizing an agreement with Google that will cost approximately $1 billion annually for access to Google's AI technology [2] - The partnership aims to rebuild Siri's underlying technology, with the new features expected to launch next spring [5][12] Technical Advancements - The Google model's 1.2 trillion parameters significantly exceed Apple's current 150 billion parameter model, enhancing Siri's ability to process complex data [3][6] - Google's Gemini model will specifically manage Siri's summarizer and planner functions, while some features will still rely on Apple's in-house models [8] Development and Future Plans - Apple is concurrently developing its own 1 trillion parameter cloud-based model, aiming for consumer applications as early as next year [12] - Despite the partnership, Apple intends to eventually replace Google's technology with its own solutions, indicating a long-term strategy to regain AI leadership [12][13] Market Impact - Following the news of the partnership, shares of both Apple and Alphabet saw a brief increase, reflecting positive market sentiment [5] - The collaboration is seen as a recognition of Apple's lag in AI capabilities, as it seeks to catch up with competitors [11] Regional Considerations - Apple is also working on a localized version of Siri for China, which will not rely on Google's technology due to regulatory restrictions [13][14]