Apple will use Google’s Gemini model for its updated Siri, launching later this year under a multi-year agreement. This partnership enhances Alphabet’s position against OpenAI, fueling a big tech AI race.
Announced on Monday, the deal represents a significant confidence in Google, while its technology powers Samsung’s Galaxy AI. The Siri partnership gives Google access to Apple’s base of over 2 billion active devices.
Apple will enhance several services, including an increasingly personalized Siri, using Google’s AI technology.
Apple and Google announced a collaboration to use Gemini AI models for key Apple technologies.
In a joint statement, both firms said the partnership will deliver innovative new experiences for Apple users.
However, experts note that Apple’s guarded approach to developing its own AI tools has increased its reliance on other companies.
By outsourcing AI to Google, Apple admits its internal efforts could not match Gemini’s, according to IDC analyst Francisco Jeronimo.
He told the BBC the move is pragmatic for Apple and signals a shift from its traditional approach.
Apple has always preferred full control, giving them an edge, he added.
Despite this, analysts believe consumers will welcome the deal as many iPhone users want AI features that competitors already offer.
Tech analyst Paolo Pescatore noted that recent financial results show AI is no longer the main factor in iPhone purchases.
He told the BBC that this is likely to change as AI-powered services gain adoption.
This is not Apple’s first agreement with an AI company.
In June 2024, Apple announced a similar partnership with OpenAI, making the ChatGPT chatbot available through its Apple Intelligence suite for generative AI tools.
Google and Apple, in a joint statement, said on Monday that Apple Intelligence will continue to operate in Apple’s private cloud computing system.
After careful evaluation, Apple determined that Google’s AI technology provides the most capable foundation for Apple Core models and is excited about the innovative new experiences it will unlock for Apple users, they said.
Apple Intelligence will continue to run on Apple devices and private cloud compute, maintaining Apple’s leading privacy standards.
A Potential Concern For Regulators
Details of the Big Tech AI race between Google and Apple, including its value, have not been disclosed beyond Monday’s joint statement.
Previous agreements to bring Google software to Apple devices have been valued at billions of dollars.
Jeronimo said iPhone users familiar with Google may not be concerned about Google’s AI, but the deal is likely to raise regulatory concerns.
Prior to a US judge ruling in August 2024, Google had operated an illegal online search monopoly. It was revealed that it paid more than $26 billion in 2021 alone to firms, including Apple, to make its search engine the default option on iPhones.
EU and UK regulators have investigated major tech deals, concerned that these companies may be using their size and market power to maintain dominance.
The UK regulator, the Competition and Markets Authority, said in October that Apple and Google both held an effective duopoly in the UK.
Apple and Google were designated as having strategic market status, which gives them the power to demand changes from firms with significant market power. The BBC has approached the CMA for comment.
