According to GSM Arena, Apple’s improved AI-powered Siri is now rumored to arrive in iOS 26.4, scheduled for release this coming spring following multiple delays. The report claims Apple will secretly use Google Gemini models for the new Siri, paying Google to create a custom Gemini-based model that runs on Apple’s private cloud servers. Interestingly, Apple apparently tested both Google’s Gemini and Anthropic’s Claude models, finding Claude technically superior but choosing Google for financial reasons due to their existing search partnership where Google pays Apple to be the default search option. Neither company is expected to publicly acknowledge this partnership, with Apple planning to advertise the AI capabilities as its own without any Gemini branding. This behind-the-scenes arrangement represents a significant strategic shift for Apple’s AI ambitions.
The Revenue Calculus Behind Apple’s AI Choice
Apple’s decision to prioritize financial considerations over technical superiority reveals the company’s current AI strategy: maximize existing revenue streams while minimizing upfront investment. The existing search deal between Apple and Google is reportedly worth $18-20 billion annually, creating a powerful financial incentive to maintain and expand this partnership. By integrating Gemini into Siri, Apple essentially creates a new revenue stream from Google while avoiding the massive R&D costs required to develop competitive foundation models from scratch. This approach allows Apple to maintain its premium brand positioning with “Apple Intelligence” while leveraging Google’s AI infrastructure behind the scenes.
Strategic Implications for the AI Ecosystem
This arrangement fundamentally reshapes the competitive dynamics in the AI space. Rather than competing directly with Google and OpenAI on foundation models, Apple appears to be positioning itself as an AI integrator and distribution platform. This mirrors Apple’s historical approach with other technologies – they didn’t invent the MP3 player, smartphone, or smartwatch, but perfected the integration and user experience. The risk for Apple is becoming dependent on Google’s AI infrastructure, potentially limiting their long-term differentiation. However, the immediate benefit is clear: Apple can focus its resources on the user-facing AI features and hardware integration that drive device sales, while Google handles the computationally expensive model training and inference.
Market Impact and Competitive Response
This partnership creates a formidable AI alliance that could pressure competitors like Microsoft and Amazon to respond with deeper integrations of their own. Microsoft’s partnership with OpenAI gives them a similar combined strength, but Apple’s control over the iPhone ecosystem provides unique distribution advantages. The arrangement also raises questions about regulatory scrutiny, as two of the world’s most valuable technology companies are effectively creating an AI duopoly through backroom deals. For consumers, the immediate benefit may be faster access to capable AI features, but the long-term concern is reduced competition and innovation in the AI space.
Long-Term Strategic Outlook
While this partnership makes short-term financial sense, it represents a calculated risk for Apple’s AI future. The company is essentially outsourcing its AI brain while focusing on the user experience wrapper. This strategy worked well for Apple with components like displays and chips, where they eventually brought key technologies in-house. However, AI represents a fundamentally different capability – the intelligence core of future devices. If Apple continues to rely on external AI models, they risk becoming a premium hardware wrapper for Google’s intelligence. The company’s massive investment in internal AI research suggests they’re aware of this risk and may be planning a gradual transition to proprietary models once they achieve competitive performance.
