Apple is making its biggest AI pivot yet, partnering with Google to power its redesigned Siri assistant with Gemini AI in a multi-year deal worth approximately $1 billion per year.
The Apple-Google Gemini Partnership
After years of struggling with in-house AI development, Apple made a strategic decision:
- Deal Value: Approximately $1 billion per year
- Technology: Google Gemini models power Apple Foundation Models
- Timeline: New Siri in iOS 26.4 beta (February), public release (March/April)
- Compatibility: iPhone 15 Pro or newer
"After careful evaluation, we determined that Google's technology provides the most capable foundation for Apple Foundation Models." – Apple
New Siri Capabilities
The Gemini-powered Siri will feature:
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- Understanding on-screen activity
- Opening apps and performing actions
- Natural, flowing conversations
- Contextual awareness across Apple ecosystem
- Advanced language understanding in 50+ languages
Q.ai Acquisition: $2 Billion
Apple confirmed acquisition of Q.ai, an Israeli audio AI startup:
- Price: Nearly $2 billion
- Significance: Apple's second-biggest acquisition ever (after $3B Beats deal in 2014)
- Focus: AI technology for audio processing
- Impact: Expected to enhance Siri voice recognition and AirPods features
AI Executive Shakeup
Apple has undergone significant AI leadership changes:
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- Out: John Giannandrea (former AI head, retired)
- In: Mike Rockwell replaced Giannandrea
- New VP of AI: Amar Subramanya (ex-Google, ex-Microsoft)
- Departed: Stuart Bowers (senior Siri executive) left for Google DeepMind
Why Apple Didn't Buy Perplexity or Mistral
Apple had considered acquiring Perplexity ($20B valuation) or Mistral ($10B valuation):
- Services chief Eddy Cue championed the acquisitions
- Craig Federighi believed Apple could build AI in-house
- Apple chose the Google partnership + Q.ai acquisition instead
What's Coming Next
- iOS 26.4: New Siri in beta (February 2026)
- HomePad: New smart home hub with advanced Siri
- Two Siri Versions: Apple is preparing two new iterations of Siri
- WWDC 2026: Expected major AI announcements
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