Apple announced a multiyear partnership with Google to use Gemini models for an AI-powered version of Siri expected later this year. The agreement will allow the company to leverage Google's cloud technology while maintaining local processing on devices.
Apple and Google wrote in a join statement:
“After careful evaluation, we determined that Google’s technology provides the most capable foundation for Apple Foundation Models and we’re excited about the innovative new experiences it will unlock for our users. Apple Intelligence will continue to run on Apple devices and Private Cloud Compute, while maintaining Apple's industry-leading privacy standards.”
Financial details about the deal were not disclosed by either company, but let's imagine that it's a BIG licensing deal. A previous report from Bloomberg suggested that Apple was planning to pay Google about $1B a year for the right to use its tech. We also don't know how long the deal is for (2 years, 5 years, etc).
Beyond money, it's a major validation for Google's AI capabilities, given that Apple was considering LLMs from other companies, including OpenAI, to power Siri. Some would say that when when the world's biggest smartphone maker and 3rd most valuable company chose Google Gemini, they effectively chose a winner in the AI race.
Apple currently partners with OpenAI to integrate ChatGPT into Siri and Apple Intelligence for complicated queries, and it's unclear what the future holds for that partnership in the long run. However in the short term, Apple told CNBC that it isn't making any changes to the agreement, and OpenAI did not comment.
Does this mean that Apple has quit the AI race?
Not necessarily. Fortune wrote:
“Apple defenders note that the company is rarely a first mover in new technology. It was not the first to create an MP3 player, a smartphone, wireless earphones, or a smartwatch, yet it came from behind to dominate many of those product categories with a combination of design innovation and savvy marketing. And Apple has a history of learning from partners for key technology, such as chips, before ultimately bringing these efforts in-house. Or, in the case of internet search, Apple simply partnered with Google for the long term, using the Google engine to handle search queries in its Safari browser. The fact that Apple never developed its own search engine has not hurt its growth. Could the same principle hold true for AI?”
