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Apple Picks Google’s Gemini for Next‑Gen Device AI as Alphabet Tops $4 Trillion

Apple says the tailored Gemini model will run within its Apple Intelligence stack under its own privacy controls.

Overview

  • Apple and Google confirmed a multi‑year deal that will put a customized Gemini at the core of new on‑device AI features, including upgrades to Siri.
  • Alphabet’s market value surpassed $4 trillion after the announcement, making it the fourth company to reach that threshold after Nvidia, Microsoft and Apple.
  • Media reports estimate the agreement at roughly $1 billion per year, though the companies have not disclosed financial terms.
  • Elon Musk criticized the pact as an unreasonable concentration of power given Google’s control of Android and Chrome, against the backdrop of U.S. findings that labeled Google a monopolist and an earlier $18 billion default‑search deal with Apple.
  • Apple says the Gemini instance must adhere to its privacy safeguards and interoperate with its own foundation models, with the role of existing OpenAI integrations yet to be clarified.