Apple is preparing to renew Siri with an AI partnership.

Apple Inc. (NASDAQ:AAPL) is nearing the end of a significant artificial intelligence partnership that could redefine the operation of its voice assistant. The company is reportedly planning to spend approximately $1 billion annually to license Alphabet Inc.'s Gemini model. This model is a powerhouse with 1.2 trillion parameters and will support the next-generation Siri. It is said that after months working with models from OpenAI and Anthropic, Apple has identified Google's technology as the most suitable short-term solution. The updated Siri is expected to be launched next spring, and this could be Apple's most ambitious AI integration since the launch of Apple Intelligence.

Under the contract, Gemini will handle more complex tasks, interpreting and executing user requests, while simpler processes will remain within Apple's ecosystem. This project, internally code-named Linwood, is overseen by Mike Rockwell, the creator of Vision Pro, and software chief Craig Federighi. To protect user privacy, the model will only operate on Apple's Private Cloud Compute servers, limiting Google's access. Despite the magnitude of this collaboration, it is reported that Apple plans to maintain a low profile regarding its relationship with Google, viewing the technology as a supplier rather than a visible partner.

Investors responded quickly. Apple’s shares rose less than 1% to $271.70, while Alphabet (NASDAQ:GOOG) increased by 3.2% to $286.42. This move shows that Apple’s dependency on temporary external technology is necessary to overcome its lag in the generative AI field. However, internal sources indicate that the company sees Gemini as a bridge, not the destination. Apple's own AI team is working on developing a model that competes with the quality of Gemini. In markets like China, where Google services are restricted, Apple plans to offer its own models with localized content filters developed in partnership with Alibaba and is also exploring collaboration with Baidu Inc..