Apple-Google $1 Billion per Year Deal for Siri AI Almost in the Bag

A year after launching its suite of AI features under the Apple Intelligence umbrella, the tech giant is now on the verge of a major partnership. The Siri voice assistant, available on iPhone, iPad, and Mac, has long been criticised for its limited intelligence. But as of 5 November 2025, Apple is close to sealing a deal with Alphabet's Google to use its Gemini AI to power the next generation of Siri.

Apple evaluated several options, including OpenAI's ChatGPT and Anthropic's Claude, before selecting Google's Gemini — widely regarded as one of the most advanced AI models today. While Apple plans to develop its own AI system, it will initially rely on Gemini for complex tasks and advanced features.

The Cost and Strategic Significance

Access to Google's 1.2 trillion parameter AI model will come at a substantial price — approximately $1 billion annually, according to Bloomberg. This investment aims to ensure that the revamped Siri will outperform current models, offering more accurate summarisation, task planning, and intelligent analysis of user commands.

The Gemini-powered Siri is expected to be launched by March 2026, though nothing has been finalised. The collaboration signals Apple's strategic move to close the AI gap with rivals like Google and Microsoft, which have heavily invested in their own AI frameworks.

Despite the hefty price tag, Apple's collaboration with Google makes business sense. The company already earns around $20 billion annually from Google for making it the default search engine on iPhones. A US judge recently ruled that Apple can continue accepting these payments, provided the deal remains non-exclusive.

Celebrating 50 Years and Preparing for the Future

Apple will celebrate its 50th anniversary on 1 April 2026. With a market valuation of approximately $3.99 trillion, it is the second most valuable company in the world, just behind AI leader NVIDIA, valued at around $4.75 trillion.

The milestone will be marked with a major celebration, followed by the Worldwide Developers Conference (WWDC) in June. Apple is expected to unveil significant updates to its operating systems, alongside major enhancements to Apple Intelligence and its broader AI strategy. The countdown has begun for these pivotal events.

Achievements in Fiscal Year 2025

Apple reported robust financial results for fiscal year 2025, including a record-breaking quarter in the fourth quarter. For the 12 months ending 27 September 2025, total revenue increased by 6.4% to $416.2 billion, while net income rose by 19.5% to $112 billion, compared to fiscal 2024.

Tim Cook, Apple's CEO, highlighted that the September quarter set records for iPhone revenue and for Services, with both reaching new highs. Chief Financial Officer Kevan Parekh noted high levels of customer satisfaction and loyalty, with the active installed base across all product categories and regions hitting an all-time high.

Apple's Position in the AI Race

Although Apple underperformed in 2025 compared to rivals like Alphabet, NVIDIA, and Amazon, it is far from out of the AI race. The company's recent strategic moves, including a potential collaboration with Google Gemini, could prove transformative.

A more dynamic ecosystem, combined with these new AI capabilities, might be just what Apple needs to regain momentum and lead in the next era of AI-driven technology.

Disclaimer: Our digital media content is for informational purposes only and does not constitute investment advice. Please conduct your own analysis or seek professional guidance before investing. Remember, investments are subject to market risks, and past performance does not guarantee future results.