Apple is inking a deal with Google to make a custom Gemini AI model to power the next version of its virtual assistant Siri for spring 2026, according to a Nov. 2 report by Bloomberg's Mark Gurman. A subsequent report on Wednesday states Apple will pay $1 billion a year for this new 1.2 trillion parameter model. 

Apple reportedly was evaluating whether to use Google or AI competitor Anthropic for the next version of Siri. While Apple will pay Google $1 billion a year, it would have cost $1.5 billion per year with Anthropic, according to another Bloomberg report. 

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This custom Gemini model will run on Apple's private cloud computer servers. Apple's own models will continue to run on devices for personal data, while Gemini will operate on servers for more complex tasks. Apple doesn't plan to highlight Google's involvement in the company's marketing, Bloomberg reports.

Google declined to comment. Apple and Anthropic didn't respond to requests for comment. 

Why Apple doesn't build its own AI

With major tech companies pivoting toward AI, Apple has largely been left behind. The tech company was slow to adopt the technology and hasn't been able to develop competitive AI models. It instead turned to companies like OpenAI, the creator of ChatGPT, to help add generative capabilities on top of existing Apple systems. 

(Disclosure: Ziff Davis, CNET's parent company, in April filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)

Even so, the promise of a truly agentic Apple Intelligence has failed to materialize, although it has improved. Apple CEO Tim Cook also hasn't ruled out the possibility of acquiring an AI company.

As to why Apple hasn't made significant strides in AI despite being one of the richest companies in the world has likely to do with prioritization. Apple, as a company, focuses on privacy for its customers. Given how data intensive AI systems rely on cloud servers, Apple has been more keen on local AI models, ones that can run on a device. The problem is that AI is computationally intensive and smaller local models simply can't compete with server stacks. Training foundational models also requires a lot of expertise and expenditure. While OpenAI hasn't given exact numbers, estimates put the training cost of GPT-5 to be over $1 billion. AI researchers also command high salaries and like to openly publish their research. For Apple, partnering with existing AI companies to integrate their technology better aligns with its culture. 

Apple also has a close relationship with Google. The search giant pays Apple $20 billion annually to remain the default search engine on Apple devices. It's a relationship that nets Apple money and prevents it from building a competitor to Google Search, a claim Apple denies. This arrangement was a key factor in the Department of Justice's case against Google, in which a judge ruled that the company was operating an illegal monopoly. 

Despite falling behind on AI, Apple is doing well financially. Last month, it surpassed a $4 trillion market cap.