Apple’s new partnership with Google to power Siri with Gemini models appears to be a costly one. A recent report says Apple may be paying around one billion dollars each year under a long-term agreement. The move confirms earlier speculation about the price of bringing Google’s AI into Apple’s ecosystem.
Google’s Gemini Will Power the New Siri
Apple confirmed this week in a joint statement that Google’s Gemini models will support the next generation of Siri and Apple Intelligence. Google described the deal as a multi-year contract. Apple added that the models will run on its own Private Cloud Compute servers to protect user privacy.
The structure matters. Instead of a simple licensing deal, the companies framed the agreement as a cloud computing contract. That means Apple pays Google over time for access to the technology and infrastructure.
How Much Apple Is Paying
A paywalled report from the Financial Times says Apple will pay “several billion dollars” over the life of the contract.
“The deal would be structured in the form of a cloud computing contract, which could lead to Apple paying several billion dollars to Google over time.”
While the paper did not give an exact figure, analysts believe the cost may average close to one billion dollars per year. Gene Munster of Deepwater Asset Management estimates the total value at about five billion dollars.
The deal echoes an earlier agreement that made Google Search the default on Apple devices, a partnership that eventually grew to roughly twenty billion dollars a year.
Apple said it selected Google because Gemini offers the “most capable foundation” for its Apple Foundation Models. For Apple, the deal provides advanced AI without massive spending on new data centers.
OpenAI Stayed Out
The report also says OpenAI decided not to become Apple’s custom AI provider. According to a person close to the company, OpenAI chose to focus on building its own hardware rather than powering Siri.
“OpenAI declined to comment. But a person close to the company said it had taken a conscious decision to not become the custom model provider for Apple.”
This does not confirm that Apple formally offered OpenAI a contract. It does show that OpenAI was not interested in a long-term role behind Siri.
Apple said the Gemini partnership does not affect its existing ChatGPT integration. Still, some analysts doubt that Apple will keep two large AI models over time. They argue that running multiple systems may not make financial sense.
A Conservative AI Strategy
Compared with rivals, Apple continues to spend less on AI infrastructure. For fiscal 2025, Apple invested about $12.7 billion in property and equipment. Google alone is expected to spend around $90 billion this year. One former Apple executive told the Financial Times that relying on Google is a direct result of Apple choosing not to build massive AI data centers.
The next-generation version of Siri, powered in part by Gemini, is expected to arrive with iOS 26.4, likely in March or April.
