Apple pays Google $1 billion yearly to fix Siri with AI

Bold symbolic scene of a glossy Apple logo and a vibrant Google G logo facing each other, connected by a bright streaming bridge of data that powers a radiant Siri-style multicolor orb at the center, high-key lighting with electric blues and magenta against warm amber highlights, close-up composition on the three elements

Apple plans to use Google’s artificial intelligence model to power a major update to its Siri voice assistant. According to Reuters, the companies are finalizing a deal that would have Apple pay about $1 billion a year for access to Google’s technology. Bloomberg News first reported the agreement on Wednesday.

Google’s Gemini Steps In

The iPhone maker will use Google’s Gemini model as a temporary solution until its own AI systems are ready. The model features 1.2 trillion parameters, a measure of AI model complexity. This scale would dwarf Apple’s current systems.

Siri has historically been less capable than Alexa and Google Assistant at handling complex requests. The assistant has also struggled with multi-step tasks and integrating with third-party apps. Rivals have rushed to add AI features to their voice assistants in recent months.

Separate from Earlier Talks

The deal is separate from earlier discussions about integrating Gemini directly into Siri as a chatbot. The partnership will not bring Google AI search into Apple’s operating systems. Google had no comment, while Apple did not immediately respond to a request for comment from Reuters.

Delayed Timeline and Leadership Changes

In March, Apple said AI improvements to Siri would be delayed until 2026. The company did not give a reason for the setback. Google added its Gemini model to its assistant last year. Amazon rolled out an AI-driven overhaul of the Alexa assistant earlier this year.

Apple shook up its executive ranks to get its AI efforts back on track after months of delays. Mike Rockwell took charge of Siri as CEO Tim Cook lost confidence in AI head John Giannandrea’s ability to execute on product development. Bloomberg had reported these leadership changes in March.

The $1 billion annual payment reflects Apple’s need to catch up in the AI voice assistant race. The deal gives Apple access to cutting-edge technology while it develops its own solutions. Google gains a major customer and revenue stream from its AI investments.

Total
0
Shares
Previous Post
Close-up of a large blue domino embossed with the IBM logo tipping into a row of small glass human figurines, dramatic diagonal composition with high contrast, cool blue tones against a bright amber accent to signal cascading job cuts

IBM to cut thousands of jobs before year ends

Next Post
Editorial photomontage featuring Nvidia CEO Jensen Huang and Donald Trump in neutral close-up three-quarter portraits facing opposite directions, a bright green Nvidia eye logo centered between them, stylized US and China map silhouettes in the background with cool blue circuitry on the US side and warm red circuitry on the China side, high brightness, clean white-to-dark gradient backdrop, balanced composition, no text.

Nvidia CEO warns China may win AI race over US

Related Posts