Apple Inc.Apple gains access to state-of-the-art Gemini AI for Siri at a fraction of the development cost, enhancing its AI capabilities without massive capex.
Apple will pay Google roughly $1 billion annually to integrate the Gemini AI model into Siri, a deal announced on January 12, 2026. The payment is a fraction of the $20 billion Google pays Apple each year to remain the iPhone's default search engine. The arrangement highlights that AI models are becoming commoditized, as Apple can swap providers while its hold on 2 billion iPhone users remains unshakable. Apple is spending just $12.7 billion on AI capital expenditures compared to Alphabet's $90 billion, yet it gains access to state-of-the-art AI without bearing most of the development costs.
Apple Inc.Apple gains access to state-of-the-art Gemini AI for Siri at a fraction of the development cost, enhancing its AI capabilities without massive capex.
Alphabet Inc Class CGoogle secures $1 billion annual revenue from Apple for Gemini AI integration, adding a new revenue stream.