CNETยท2025-11-12 18:36Core Insights - Apple is entering a partnership with Google to develop a custom Gemini AI model for Siri, with an annual cost of $1 billion for a model featuring 1.2 trillion parameters, set to launch in spring 2026 [1][2] - The decision to partner with Google over Anthropic was influenced by cost considerations, as Anthropic's model would have cost $1.5 billion annually [2] - The Gemini model will operate on Apple's private cloud servers, while Apple's existing models will continue to run locally on devices [3] Group 1 - Apple has been slow to adopt AI technology and has not developed competitive AI models, leading to reliance on partnerships with companies like OpenAI [4][6] - The company's focus on privacy has resulted in a preference for local AI models, which are less computationally intensive but cannot compete with server-based models [6] - Despite challenges in AI development, Apple remains financially strong, recently surpassing a $4 trillion market cap [8] Group 2 - Apple maintains a lucrative relationship with Google, receiving $20 billion annually to keep Google as the default search engine on its devices, which also impacts its competitive stance in the search market [7] - The partnership with Google for AI development aligns with Apple's culture of integrating existing technologies rather than building from scratch [6]