Apple Pays Google $1B Annually to Power Rebuilt Siri with Gemini AI Model
Apple has agreed to pay Google approximately $1 billion per year to use a custom 1.2-trillion-parameter Gemini model for Siri's planning and summarization capabilities, with both companies jointly confirming the partnership in January 2026. The deal follows years of well-documented struggles with Siri, including delayed AI features previewed at WWDC 2024 that were still not fully shipped by mid-2025. Apple faced a false-advertising class action lawsuit over Siri features shown in iPhone 16 ads that had not yet launched, reportedly resulting in a roughly $250 million settlement. Leadership over Siri was also reshuffled, with Tim Cook transferring responsibility from AI chief John Giannandrea to Mike Rockwell, the executive behind the Vision Pro headset. Despite the setbacks, Apple's ecosystem lock-in — spanning 2.5 billion active devices and roughly 89% iPhone loyalty — has largely insulated the company from significant market or financial consequences.
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