Apple is reportedly finalising a deal to licence Google’s mammoth AI model — built by Google’s Gemini team — for around $1 billion annually, according to industry reports.
The move comes as Apple seeks to revive its once-early-lead in voice-assistant capability; Siri has lagged competitors in handling complex, multi-step requests and deep third-party integrations. By leveraging the Gemini model, Apple aims to bridge that gap more rapidly.
While the partnership is positioned as a stop-gap, Apple continues to develop its own in-house AI infrastructure. Still, analysts say this licence signals a practical recognition that current internal capabilities were insufficient to match market expectations for advanced assistant functionality.

Key Highlights
• Apple plans to integrate Google’s 1.2 trillion-parameter AI model into Siri.
• The agreement could cost Apple around $1 billion per year.
• Siri has lagged peers in complex conversational AI and integration capabilities.
• This deal suggests Apple is accelerating its AI roadmap rather than relying solely on internal model development.
• The shift comes at a time when AI-driven voice assistants and smart ecosystems are a growing battleground among major tech players.

Why This Matters
• For Apple, tapping Google’s advanced model reflects urgency — the company recognises that to maintain relevance, its assistant must evolve beyond incremental updates.
• The arrangement highlights how even major tech firms are willing to licence external AI-capabilities rather than go it alone — potentially signalling a broader trend in the industry.
• For users and developers, this could mean a leap forward in voice-assistant sophistication: smoother multi-step conversations, deeper app control and stronger contextual understanding.
• From an ecosystem-perspective, the deal may reshape competitive dynamics: rivals will need to respond with their own advances; partnerships and licensing models may proliferate.

Source
Reuters – Full Article