Apple's Google Gemini Deal Could Be Worth $5 Billion

Apple's recently announced partnership with Google to usage Gemini models for Siri and Apple Intelligence could beryllium worthy arsenic overmuch arsenic $5 billion, according to 1 analyst's estimate.


The woody is structured arsenic a unreality computing declaration that volition spot Apple wage "several cardinal dollars to Google implicit time," according to the Financial Times (paywalled), citing a idiosyncratic acquainted with the agreement. Gene Munster astatine Deepwater Asset Management puts the worth astatine $5 cardinal for Google.

The statement is reminiscent of a woody made 2 decades agone that made Google's hunt motor the default connected Apple devices, which grew to beryllium worthy astir $20 cardinal annually to Apple.

Apple said it determined that Google's exertion provides the "most susceptible foundation" for its Apple Foundation Models. However, the Gemini concern raises questions astir the aboriginal of Apple's existing ChatGPT integration, which has been portion of Apple Intelligence since 2024. Apple said the Google woody does not impact the ChatGPT integration, but Munster expressed skepticism astir its semipermanent prospects.

"I deliberation that the ChatGPT integration is going to dice connected the vine... having 2 ample models, fixed the economies of scale, wouldn't marque a ton of consciousness for Apple," helium told FT.

A idiosyncratic adjacent to OpenAI told the paper that the institution had taken "a conscious determination to not go the customized exemplary supplier for Apple" past autumn to absorption connected gathering its ain AI device. That hardware effort is being led by erstwhile Apple plan main Jony Ive, who was hired by OpenAI successful May 2024 – a determination Munster suggested whitethorn person soured Apple connected a deeper OpenAI partnership.

Despite the $5 cardinal figure, Apple's Gemini woody is comparatively blimpish compared to different companies' AI infrastructure spending. Google, Microsoft, Amazon, and Meta person each committed hundreds of billions of dollars to caller AI information centers since ChatGPT launched successful 2022, but Apple has kept its concern successful carnal infrastructure astatine astir 3 percent of revenue, according to FT's analysis.

For fiscal 2025, Apple's spending connected property, plant, and instrumentality was $12.7 billion. Compare that to the astir $90 cardinal Google is expected to walk this year. One erstwhile Apple enforcement told the FT that the Google woody was "a indispensable byproduct of Apple's determination not to 'go big' connected its AI investments similar its competitors."

The next-generation mentation of Siri is expected to beryllium introduced with iOS 26.4, which volition apt beryllium released to the wide nationalist successful March oregon April.
This article, "Apple's Google Gemini Deal Could Be Worth $5 Billion" archetypal appeared connected MacRumors.com

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