In a significant move that underscores the competitive pressures of the AI race, Apple is reportedly nearing a landmark deal with Google. The agreement would see the iPhone maker pay approximately $1 billion annually to license a custom version of Google’s Gemini AI model, which will serve as the engine for a completely overhauled Siri voice assistant.
The partnership, detailed in a recent Bloomberg report, signals a strategic shift for Apple, a company renowned for its vertical integration and reliance on in-house technology. This collaboration is positioned as an interim solution, allowing Apple to rapidly advance its AI capabilities while its own foundational models continue to develop.
A Strategic Pivot for Apple
For years, Apple has been developing its own AI, dubbed Apple Intelligence. However, the reported deal with Google highlights the immense computational power required to compete at the highest level of generative AI. The custom Gemini model is said to feature 1.2 trillion parameters, a standard measure of an AI’s complexity and power.
This represents a monumental leap from Apple’s current cloud-based models, which operate with 150 billion parameters. The new Google-powered engine would be roughly eight times more complex, enabling a far more sophisticated and capable Siri. Before settling on Google, Apple had also evaluated models from other AI leaders, including OpenAI and Anthropic.
Implications for the MENA Tech Ecosystem
This collaboration between two of the world’s largest technology companies sends clear signals to the MENA startup and investment community. For regional AI startups, it reinforces the colossal capital and data requirements needed to build competitive foundational models, potentially steering local innovation towards specialized, niche AI applications rather than direct competition.
Furthermore, a vastly improved Siri could unlock new opportunities for app developers across the Middle East. A more intelligent and context-aware voice assistant could create demand for deeper integrations within apps, from e-commerce and fintech to logistics and content platforms. This shift could influence how regional founders and VCs prioritize product roadmaps, placing greater emphasis on voice-first and AI-driven user experiences.
About Apple
Apple Inc. is a multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five American information technology companies, alongside Amazon, Google, Meta, and Microsoft. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, and the Apple TV digital media player.
Source: TechCrunch
