Overview
- Apple and Google issued a joint statement confirming a multi-year collaboration that bases Apple’s next generation of Apple Foundation Models on Gemini, with a more personalized Siri due later this year.
- The companies said Apple Intelligence will execute on Apple hardware and its Private Cloud Compute rather than Google’s public servers to protect user data.
- Neither side disclosed financial or technical terms; prior Bloomberg reporting of roughly $1 billion per year and a custom ~1.2 trillion‑parameter Gemini model remains unconfirmed.
- Industry reports suggest Apple’s in-house models will continue to handle some Siri functions while Gemini may take over planner and summarizer tasks, with workloads reportedly running on Apple’s servers.
- Alphabet’s valuation briefly topped $4 trillion after the announcement, as investors viewed the agreement as a significant validation for Google’s AI business while Apple shares saw smaller moves.