CNETยท2025-11-06 17:46Core Insights - Apple is collaborating with Google to develop a custom Gemini AI model for Siri, set to launch in spring 2026, with an annual cost of $1 billion for the model [1][2] - Apple considered both Google and Anthropic for this project, ultimately choosing Google due to a more favorable financial offer, as Anthropic's proposal was $1.5 billion per year [2] - The Gemini model will operate on Apple's private cloud servers, while Apple's existing models will continue to function on devices for personal data [3] Company Positioning - Apple has been perceived as lagging in AI development compared to major tech competitors, having been slow to adopt AI technologies and lacking competitive AI models [4] - Despite its challenges in AI, Apple remains financially robust, recently surpassing a $4 trillion market capitalization [6] - The relationship between Apple and Google is significant, with Google paying Apple $20 billion annually to be the default search engine on Apple devices, which also influences Apple's competitive strategy [5]