In brief
- Apple and Google announced a multi-year deal to base Apple’s future Foundation Models on Google’s Gemini AI.
- The partnership follows a weak reception to Apple Intelligence, which launched in 2024 with limited capabilities.
- Apple says AI features will still run on its devices and private cloud infrastructure, to preserve privacy.
In a historic pivot, Apple confirmed today that it is turning to its long-time rival, Google, to rescue its stalled artificial intelligence ambitions.
Under a new multi-year agreement, Apple’s “next generation” of AI models that underpin its ecosystem will be built on Google’s Gemini.
“After careful evaluation, Apple determined that Google’s AI technology provides the most capable foundation for Apple Foundation Models and is excited about the innovative new experiences it will unlock for Apple users,” Apple and Google said in a joint statement.
For years, Apple has prided itself on building its own hardware, software, and silicon chips. However, the lackluster 2024 launch of Apple Intelligence and subsequent delays in upgrading Siri left the company in a precarious position of having to decide whether to bring in help or effectively be left behind in the ever-accelerating AI race.
The deal marks a pragmatic reset for Apple as it struggles with executive departures to rival Meta, which underscored those challenges, and leaves Apple to rely on a competitor to power its AI strategy.
The shift also casts Google as the clear frontrunner in the AI arms race, eclipsing OpenAI, whose ChatGPT product Apple previously added to iOS devices to give Siri additional chatbot functionality.
While official terms were not disclosed, in November, Bloomberg reported Apple would pay Google roughly $1 billion annually for access to Gemini. Despite the reliance on Google’s technology, Apple is attempting to reassure users that its strict privacy standards remain intact.
“Apple Intelligence will continue to run on Apple devices and Private Cloud Compute, while maintaining Apple’s industry-leading privacy standards,” the joint statement said.
Neither Apple nor Google said when the change would take effect, if Gemini or Google branding would appear on Apple devices, or whether users would be able to choose between Gemini and ChatGPT on their devices.
The market reaction to the partnership news was immediate. Google’s parent company, Alphabet, briefly crossed a $4 trillion market capitalization today, as the deal cements Gemini as the AI engine for both Android and iOS.
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Source: https://decrypt.co/354283/apple-taps-googles-gemini-power-ai-models-apple-intelligence-stumbles
