Apple’s AI Catch-Up Plan: Pay Google $1B for Gemini

Apple’s plan to catch up in the AI race involves a $1 billion-a-year check to its main rival, Google. The company will use Google’s 1.2 trillion parameter Gemini model as an “interim solution” to power the new “Linwood” Siri.

This decision, part of the “Glenwood” project, comes after Apple’s 150-billion parameter models were found lacking. Google’s “ultrapowerful” AI won a “bake-off” against OpenAI and Anthropic, proving it can handle the complex “summariser” and “planner” functions Apple needs.

The new Siri, launching in the spring, will be a hybrid system. Apple’s tech will handle simple tasks, while Google’s AI will be the “behind-the-scenes” engine for multi-step, complex requests.

For Google, this is a major strategic win. For Apple, it’s a reluctant admission of its AI lag, with top executives Craig Federighi and Mike Rockwell tasked with managing the partnership.

The entire deal is underpinned by Apple’s “walled-off” privacy system. The Gemini model will run on Apple’s Private Cloud Compute servers, not Google’s, ensuring user data remains secure and private.