Apple May Use Google Servers for AI Siri
Apple is reportedly considering a major AI strategy shift by using Google's cloud servers to store data for its upgraded Siri platform. The move would represent a notable deepening of Silicon Valley’s interdependence for critical AI infrastructure, even as competition intensifies.
This isn't just a software license; Apple is reportedly asking Google to set up and run dedicated servers for a supercharged Siri. This signals a significant shift from Apple's traditional self-reliant approach to infrastructure. The potential deal is structured as a cloud computing contract that could be worth billions to Google. Analysts estimate Apple might pay Google around $1 billion annually to use its Gemini AI models. This is in addition to the estimated $20 billion Google already pays Apple to be the default search engine in Safari. For Apple, this move is a strategic shortcut to catch up in the AI race. Developing and deploying large-scale AI requires massive, specialized server infrastructure, and reports suggest Apple's own AI infrastructure is struggling to keep pace. Partnering with Google allows Apple to leverage mature technology and reduce its time-to-market for a more advanced Siri. The first Siri updates powered by Google's Gemini AI are expected to roll out sometime in 2026. This collaboration aims to transform Siri from a simple command tool into a more conversational and intelligent assistant, a key feature needed to drive upgrades for future iPhones. While leaning on Google for cloud power, Apple is also developing its own AI server chips under the codename Project ACDC (Apple Chips in Data Center). This long-term project aims to bring its custom silicon expertise to its data centers, initially using M2 Ultra chips with plans to upgrade to M4-based chips. This hybrid strategy of using third-party clouds while building its own allows Apple to avoid the massive upfront capital expenditure on data centers that rivals like Google, Meta, and Microsoft are making. In fiscal year 2025, Apple's spending on property, plant, and equipment was $12.7 billion, a fraction of Google's projected $90 billion. The collaboration raises privacy questions, a cornerstone of Apple's brand. To address this, Google may set up new servers that meet Apple's strict privacy requirements, potentially even deploying them inside Apple's own data centers to keep sensitive user data within Apple-controlled facilities. This deal is not exclusive. Apple has stated that its existing integration with OpenAI's ChatGPT will continue. However, deepening its ties with Google for core Siri functions is a significant blow to other potential AI partners.
