Apple's Google Gemini Deal Could Be Worth $5 Billion

Apple's Google Gemini Deal Could Be Worth $5 Billion

MacRumors technology

Key Points:

  • Apple has entered a partnership with Google to use Google's Gemini AI models for Siri and Apple Intelligence, with the deal potentially worth up to $5 billion over time, structured as a cloud computing contract.
  • The agreement is seen as similar to the historic deal that made Google the default search engine on Apple devices, which became highly lucrative for Apple, but raises questions about the future of Apple's existing ChatGPT integration.
  • Apple maintains the Google deal will not impact its ChatGPT integration, but analysts express skepticism, suggesting Apple may phase out ChatGPT due to the inefficiency of maintaining two large AI models.
  • OpenAI reportedly chose not to become Apple's custom AI provider to focus on its own AI hardware development, led by former Apple design chief