Apple is preparing to revamp Siri with its AI partnership.

Apple Inc. (NASDAQ:AAPL) is nearing the end of a significant artificial intelligence partnership that could redefine the functionality of its voice assistant. The company is reportedly planning to spend approximately $1 billion annually to license Alphabet Inc.'s Gemini model. This model, which boasts 1.2 trillion parameters, will support the next generation of Siri. After spending months evaluating OpenAI and Anthropic models, it is stated that Apple has identified Google's technology as the most suitable short-term solution. The updated Siri is expected to be released next spring, marking 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. Known by its internal codename Linwood, this project is overseen by Mike Rockwell, the creator of Vision Pro, and Craig Federighi, the software chief. To protect user privacy, the model will only operate on Apple's Private Cloud Compute servers, limiting Google's access. Despite the scale of this collaboration, it is reported that Apple plans to maintain a low-profile relationship with Google, viewing the technology as a supplier rather than a visible partner.

Investors reacted quickly. Apple’s shares rose by less than 1% to $271.70, while Alphabet (NASDAQ:GOOG) increased by 3.2% to $286.42. This move indicates that Apple's dependency on external technology is a temporary measure to address its lag in the generative AI space. However, internal sources within the company see Gemini as a bridge, not a destination. Apple’s own AI team is continuing efforts to develop a competing model that matches the quality of Gemini. In markets where Google services are restricted, such as China, Apple plans to offer its own models using localized content filters developed in collaboration with Alibaba and is also exploring partnerships with Baidu Inc..