A Samsung Galaxy AI Feature Pushes Apple to Pay Google $1 Billion Annually for AI Support
Samsung appears to have taken a decisive lead in the smartphone artificial intelligence race with its Galaxy AI features, developed in partnership with Google’s Gemini, outpacing Apple Intelligence, which has had a slower and more challenging rollout.
According to recent reports, Apple is preparing to strike back—and it could cost the company around $1 billion per year to do so. Bloomberg revealed that Apple is close to finalizing a deal with Google to integrate a customized version of Gemini AI into its Apple Intelligence framework, designed to enhance the capabilities of Siri.
Apple’s current in-house AI model reportedly contains 150 billion parameters, while Google’s Gemini boasts a massive 1.2 trillion parameters, representing a major leap in processing power and contextual understanding.
Under the terms of the expected agreement, Google will provide Apple with a tailored Gemini model to power future versions of Siri, with a launch expected in spring 2026. However, in a significant concession from Google, Apple will run the AI model on its own Private Cloud Compute servers, ensuring that the company maintains its well-established privacy-first narrative.
Industry analysts say the $1 billion annual payment will be relatively minor for Apple, considering that Google already pays Apple several times that amount to remain the default search engine on Safari.
Meanwhile, it remains to be seen how this partnership will affect Samsung. The Korean tech giant has already embedded Gemini deeply into its Galaxy devices while maintaining control over its own assistant, Bixby, and using Galaxy AI as a differentiator.
If Apple’s revamped AI system significantly outperforms Galaxy AI, experts suggest Samsung may seek a similar or expanded partnership to sustain its competitive edge in the era of intelligent smartphones.