Apple will pay billions for Gemini after OpenAI declined
9to5Mac • • general
Key Points:
- Apple has confirmed that Google’s Gemini AI models will power the new Siri, with the technology running on Apple’s Private Cloud Compute servers to ensure user privacy.
- The partnership is a multi-year cloud computing contract, reportedly costing Apple around $1 billion per year, potentially amounting to several billion dollars over time.
- This deal is seen as favorable for Apple, as it reportedly earns more than 20 times that amount from Google through search-related revenue.
- OpenAI consciously chose not to partner with Apple for Siri’s AI, instead focusing on developing its own AI hardware device, designed by former Apple design chief Jony Ive.
- It remains unclear whether Apple formally offered OpenAI a contract, but OpenAI’s decision reflects a strategic move to compete
