Apple may tap Google’s Gemini for a smarter Siri. What it could mean for AAPL and GOOG
TLDR for busy readers
Bloomberg reports that Apple is nearing a deal to license a customized Google Gemini model for Siri, at about 1 billion dollars per year. The model is said to be around 1.2 trillion parameters and would run on Apple’s Private Cloud Compute. This is not an official announcement, but a credible report by Bloomberg.
What happened in simple words
Apple wants Siri to be much smarter.
Instead of waiting only for its own AI to catch up, Apple may use Google’s Gemini in the background for heavy tasks like planning and long text summaries.
Apple would still use its own models for some on-device features. The Google part would live in Apple’s secure cloud.
Why this matters for stock watchers
AAPL stock
Near term sentiment: supportive. Investors like faster AI progress that users can feel.
Risk to track: higher cloud AI costs could pressure margins if usage explodes. Listen for any color on AI cost of goods or capex.
GOOG stock
Near term sentiment: positive. This validates Gemini in a marquee partnership and could add high margin platform revenue.
Where it might show up in results:
Google Cloud revenue if Apple pays for running Gemini as a cloud service.
Other revenues inside Google Services if parts are structured like software or platform licensing outside Cloud. Alphabet will not break out Apple by name, so watch segment growth and CFO hints.
For the young stock investors out there...
Think of Siri as a student. Apple is bringing in a top tutor from Google to help the student learn faster right now.
Does this mean Apple gave up on its own AI? No. It is a bridge. Apple still builds its own models. Using Gemini could speed things up while Apple improves its stack.
Will my iPhone leak data to Google? The report says Apple would run this on its own secure cloud setup. That means Apple keeps control of the environment while using Google’s model. Details will only be clear if the companies confirm.
What pros should watch next
- Official confirmation, timing, and feature demos tied to Siri.
- Apple guidance on AI operating costs or margin effects.
- Alphabet’s commentary on enterprise AI demand and any acceleration in Google Cloud or Other revenues growth.
Our take for you long term stock investors at investingLive
Okay, so the market may still be correcting. After that, if confirmed, this looks incrementally bullish for GOOG as an AI platform supplier and supportive for AAPL because it shortens the time to visible AI upgrades.
The big swing factor for AAPL is unit usage vs cost. If Apple can keep most tasks on efficient on-device models and push only the hardest requests to the cloud, margin pressure is manageable.
For GOOG, even a single flagship customer strengthens the story that Gemini is not only a consumer chatbot, but also a backend model rented by the world’s largest platforms.
This article is for education and decision support only. It is not investment advice. Manage your own risk.
