Invezzยท2025-11-06 08:11Core Insights - Apple Inc. is nearing a $1 billion annual deal with Alphabet Inc.'s Google to utilize its Gemini AI model for enhancing Siri, marking a significant shift in Apple's AI strategy [4][5][10] - The partnership is one of the largest AI licensing agreements in the tech industry and highlights Apple's urgency to improve Siri's capabilities in response to competition [4][12] - The upgraded Siri, expected to launch in 2026, will leverage Gemini's advanced processing power, which has 1.2 trillion parameters compared to Apple's current 150 billion parameter model [6][7][12] Financial Implications - The partnership will cost Apple approximately $1 billion per year, representing a substantial investment in external AI technology [4][5] - This deal indicates a pragmatic shift in Apple's strategy, acknowledging the need for external support to compete in the AI landscape [13] Technological Developments - Google's Gemini model is significantly more advanced than Apple's existing systems, allowing for improved data processing and task execution [6][7] - The new Siri will run on Apple's secure servers, ensuring user data privacy while utilizing Google's technology for advanced functions [8][9] Competitive Landscape - Apple's move comes as competitors like Google and Amazon accelerate their AI advancements, with Google having already integrated Gemini into its Assistant [12] - The partnership with Google positions Apple to catch up in the AI race, as it plans to unveil a preview of the new assistant alongside next-generation iPhones in 2026 [12][13] Strategic Partnerships - This collaboration marks a rare instance of Apple relying on Google for technology, positioning Google as a behind-the-scenes provider rather than a public partner [10][11] - The agreement follows previous discussions that did not result in direct integration of Gemini into Siri as a chatbot, indicating a more cautious approach to collaboration [10][11]