Apple Will Spend Billions on Google’s Gemini AI After OpenAI Opts Out

Apple is planning to pay billions of dollars to use Google’s Gemini artificial intelligence (AI) technology for its new Siri voice assistant and Apple Intelligence features — after OpenAI chose not to take part in the deal, according to a new report.

This is a big move for Apple — a company that usually builds most of its own technology — and shows how important AI has become for smart phones and digital assistants. 

What Apple Is Doing

Apple and Google have agreed to a multi-year partnership that will let Apple use Google’s Gemini AI models inside its software, including a major upgrade to Siri and other intelligence features on iPhones and other devices. 

• Apple is expected to pay around $1 billion a year as part of the deal.
• Some analysts estimate the total value of the deal could be as high as $5 billion or more over time.
• Apple still says it will protect user privacy — the AI will run on Apple’s own systems and follow its privacy rules.

This agreement is unusual because Apple and Google are normally rivals in areas like phones and operating systems, but they’ve worked together before on things like search.

Why OpenAI Didn’t Join the Deal

According to the report, OpenAI — the company behind ChatGPT — decided not to power Siri or act as Apple’s core AI partner. That choice left the door open for Google’s Gemini to become the main AI system Apple uses. 

OpenAI had previously been integrated into Apple products through ChatGPT features in Siri and other applications, but its role was more optional and not the foundation of the new technology.

Why This Matters

Big Shift in AI Strategy

Apple has been slow to roll out its own advanced AI tools compared with companies like Google, Microsoft and Meta. Using Gemini helps Apple bring stronger AI features to millions of users, faster than if it built everything itself.

Impact on the AI Market

Some tech analysts say this move gives Google a major advantage in AI because Gemini will soon power AI on both Android and Apple devices, expanding its reach.

At the same time, missing out on the Apple deal is seen by some observers as a setback for OpenAI, which hoped to be the main AI partner for one of the world’s biggest tech companies.

Privacy and Apple’s Approach

Even though Google’s AI will help power Apple’s tools, the companies say user data won’t be shared with Google or used to train Google’s models. Apple plans to handle AI computing within its Private Cloud Compute system to protect privacy. 

This reflects Apple’s long-standing focus on privacy and security, even while relying on outside technology for performance.

What’s Next

The upgraded AI-powered Siri and Apple Intelligence features are expected to roll out later in 2026 with new updates to iOS and other Apple software. Analysts say the partnership could change how people interact with iPhones and other Apple devices. 

In the meantime, Apple is still working on its own AI models — but using Google’s technology now gives it ready-made power while it continues to develop inside solutions. 

Bottom Line

Apple is spending billions to use Google’s Gemini AI to strengthen its Siri assistant and broader AI features, after OpenAI chose not to take the deal. The move highlights how competitive and important AI has become for tech companies, and how partnerships are shaping the future of smart devices.