Apple and Google: A Strategic Partnership Around AI Gemini

A Billion-Dollar Partnership

Apple and Google have struck a significant deal, valued at around one billion dollars per year. This agreement, while it may seem like a simple business transaction, conceals much deeper implications for both tech giants.

Integration of Gemini into Siri

Since January 2026, Apple has begun integrating Google's Gemini AI model into its voice assistant, Siri. This partnership, revealed by The Information, goes far beyond a mere licensing agreement. Apple gains full access to Gemini, allowing it to leverage the model in its own data centers. This integration is not limited to using the model; it also includes the ability for Apple to "distill" Gemini to train its own AI systems.

The Distillation Technique

Distillation is a technique that allows a smaller model to learn from a larger one. In this context, Apple submits tasks to Gemini and retrieves not only the answers but also the reasoning behind those answers. This information is then used to train more compact models capable of replicating Gemini's internal processes. The goal is to create models lightweight enough to run directly on an iPhone without requiring a network connection.

Implications for Data Privacy

Hosting Gemini in Apple's data centers has significant implications for user privacy. Indeed, data does not need to pass through Google's servers, aligning with the privacy protection policy that Apple has long championed. However, adapting Gemini for Siri presents challenges. The model was primarily designed for conversational agents and code generation, which does not always meet the requirements of a voice assistant like Siri. To overcome these hurdles, the Apple Foundation Models team is working on developing internal models distinct from Google's. In the meantime, Gemini is set to play a key role in the redesign of Siri, expected with iOS 27 at the upcoming WWDC conference in June.

Strategic Importance for Apple

The right to access Gemini is crucial for Apple. Tim Cook, Apple's CEO, was among the first to publicly recognize the potential of DeepSeek R1 in early 2025, a model that demonstrated it was possible to create high-performance tools at a lower cost through distillation. Google has also adopted this approach with its Gemma 3 model. For Apple, this access represents an opportunity to develop lightweight models optimized for its Apple Silicon chips.

By obtaining this right, Apple is able to close its gap in artificial intelligence without having to develop a massive model from scratch. Gemini is used as a learning source, allowing Apple to extract essential elements. While concerns have been raised by players like Anthropic regarding unauthorized distillation, in this case, the agreement between Apple and Google is entirely legal and contractual.

Outlook for Google

For Google, this agreement with Apple is an opportunity to quickly monetize the high costs associated with training its AI models and the necessary infrastructure. It also allows Google to reassure its creditors about its ability to manage its long-term debt. Given Google's history, it is unlikely to overlook Apple's preparations, but this agreement represents a mutual benefit for both companies.