Apple considered using Anthropic's Claude to power Siri, but the deal fell through due to Anthropic's exorbitant pricing demands. Instead, Apple has opted to integrate Google's Gemini AI model. This shift comes as Apple recognizes its internal AI models lag behind competitors. The company already uses AI from OpenAI and Anthropic elsewhere.

Mark Gurman of Bloomberg reports that Apple was in talks with Anthropic. However, Anthropic allegedly sought a multi-billion dollar annual fee, prompting Apple to seek alternatives. In contrast, the deal with Google is expected to be much less expensive. Apple is also expected to use AI models from Chinese companies for Siri in China.

Beyond Siri, Apple has custom versions of Claude running on its own servers. The company is strategically diversifying its AI partnerships, also utilizing OpenAI's ChatGPT. Apple's long-term goal may involve developing its own internal AI models, reducing reliance on external providers like Google and Anthropic.

Apple's substantial R&D investments suggest its in-house AI development could accelerate. This move reflects a broader trend in the tech industry where companies are increasingly investing in proprietary AI solutions. It also underscores the high stakes in the AI race with companies like Google and OpenAI.