Apple to Pay Google $1B Annually for Custom AI Model to Revamp Siri

Apple is nearing a deal with Google that would see the iPhone maker pay the tech giant roughly $1 billion annually for a custom version of Google's Gemini AI model to power its overhaul of Siri, according to a new report from Bloomberg. The move is a significant one for Apple, which has traditionally relied on its own technology but plans to use Google's model as a temporary solution until its own AI becomes powerful enough, including to power a slate of upcoming features for the voice assistant. The custom AI model, which boasts 1.2 trillion parameters, a measure of the software's complexity and capability, would far exceed the level of Apple's current models. For context, the current cloud-based version of Apple Intelligence uses 150 billion parameters, meaning Google's model would be roughly eight times more complex. Apple had also considered using AI models from OpenAI and Anthropic earlier this year, but after testing models from all three companies, Apple chose to move forward with Google. According to Bloomberg, the overhauled Siri is expected to launch next spring. However, since the launch is still months away, plans for the revamp could change. Apple's decision to partner with Google marks a significant shift in the company's approach to AI development, as it seeks to catch up with competitors in the rapidly evolving field. Industry analysts say the move is a strategic one for Apple, which has been playing catch-up in the AI space. "This partnership with Google is a smart move for Apple, as it allows them to tap into Google's expertise in AI and bring a more advanced voice assistant to market," said Dan Ives, a technology analyst at Wedbush Securities. "However, it also raises questions about the long-term implications of relying on a third-party AI model." The partnership with Google is also seen as a significant development in the AI industry, as it highlights the growing importance of large language models in powering voice assistants and other applications. Google's Gemini AI model is considered one of the most advanced in the industry, and its use in Siri could set a new standard for voice assistants. As Apple continues to work on the overhaul of Siri, the company is expected to reveal more details about the new features and capabilities of the voice assistant. However, with the launch still months away, it remains to be seen how the new and improved Siri will perform in the market.