Apple Inc. (NASDAQ:AAPL) is paying Alphabet's Google approximately $1 billion per year for access to a custom version of its Gemini AI model to power a rebuilt Siri, under a deal unveiled at the company's WWDC 2026 event, marking one of the most consequential technology partnerships in the industry.

Key Highlights

  • $1BN annual payment: Apple is paying Google roughly $1 billion per year to license a custom version of the Gemini AI model to power a rebuilt Siri, using Google's cloud infrastructure and Nvidia Blackwell chips for inference.
  • Siri rebuilt on Gemini: The revamped assistant, branded Siri AI, runs a 1.2 trillion-parameter model for complex queries that Apple could not run on its own Private Cloud Compute servers.
  • Three layers of Google dependency: Apple now relies on Google for the AI model, Google's cloud infrastructure for inference, and Google TPUs for model training, creating multiple dependency points with a direct competitor.
  • Regulatory risk flagged: The arrangement deepens an already scrutinised commercial relationship between Apple and Google, with the AI deal structurally similar to the existing search default agreement that has attracted antitrust attention.

Apple Inc. (NASDAQ:AAPL) confirmed at its annual WWDC 2026 developer conference that it has rebuilt Siri on a custom version of Google's Gemini model, under a licensing arrangement reported to be worth approximately $1 billion per year. The deal gives Apple access to frontier-class AI capabilities without building large models in-house, while handing Google (NASDAQ:GOOGL) distribution across more than two billion Apple devices globally.

The rebuilt assistant, called Siri AI, splits queries between on-device models that Apple developed itself and a cloud-hosted Gemini model for complex tasks requiring advanced reasoning. Apple said the heavier cloud-based queries would run on Google's fleet of Nvidia Blackwell B200 data centre chips, with user data encrypted using hardware-level security features. Apple CEO Tim Cook described the collaboration with Google as going well and said the company is also continuing independent AI development in parallel.

The arrangement marks a significant shift for a company that has historically prioritised vertical integration and in-house development. Apple had previously attempted to revamp Siri using its own models, but the company acknowledged that earlier attempts did not meet its standards, leading to the partnership with Google. Apple also settled a $250 million class action last month over marketing AI features in 2024 that were not ready at the time the iPhone 16 launched.

The commercial terms of the deal have not been publicly disclosed, but the $1 billion annual figure has been widely reported. Google already pays Apple tens of billions of dollars annually to remain the default search engine on Safari, terms revealed through U.S. antitrust proceedings. Adding an AI infrastructure layer to the relationship deepens what antitrust observers describe as a structural dependency between two companies that are simultaneously competitors in mobile operating systems.