Apple's partnership with Google to use Gemini models for Siri and Apple Intelligence could be worth up to $5 billion. This cloud computing contract will see Apple pay Google several billion dollars over time, according to the Financial Times. The deal mirrors a previous agreement where Google's search engine became the default on Apple devices, generating about $20 billion annually for Apple.

This collaboration raises questions about the future of Apple's existing ChatGPT integration, which has been part of Apple Intelligence since 2024. Analyst Gene Munster from Deepwater Asset Management suggests that the ChatGPT integration may be phased out, as maintaining two large models could be inefficient for Apple. OpenAI, meanwhile, is focusing on building its own AI device, led by former Apple design chief Jony Ive.

Apple's approach to AI infrastructure is comparatively conservative. Unlike competitors such as Google, Microsoft, Amazon, and Meta, which have committed hundreds of billions to new AI data centers, Apple's investment remains modest. For fiscal 2025, Apple spent $12.7 billion on property, plant, and equipment, a fraction of Google's expected $90 billion spend. This deal reflects Apple's strategy of leveraging partnerships rather than massive internal investments.

The next-generation Siri, powered by Gemini, is expected to launch with iOS 26.4 in March or April. This move underscores Apple's focus on enhancing its AI capabilities through strategic partnerships, a departure from its previous stance on maintaining internal control over technology.