Apple Inc. is in early discussions with Alphabet Inc.’s Google about using its Gemini artificial intelligence (AI) system to power a revamped version of Siri, Bloomberg reported citing people familiar with the matter.

The potential move marks a significant step towards outsourcing key AI technology as Apple seeks to catch up in a field where it has fallen behind rivals.

Shares of both companies climbed after the report. Google stock rose 3.88% to $208.41 in New York trading on Friday, while Apple shares gained 1.4% to $227.95.

Catching up in Generative AI

Apple has been working to modernise Siri, which has faced years of criticism for lagging behind competitors.

A long-touted upgrade intended to allow the assistant to fulfil commands by drawing on personal data and enabling full device navigation by voice was delayed by a year due to engineering challenges.

To address these setbacks, Apple is weighing whether to continue relying on its internal AI models or to partner with an external provider.

The iPhone maker has held talks not only with Google, but also with Anthropic PBC and OpenAI, exploring whether Claude or ChatGPT could serve as the foundation of a new Siri.

Internally, Apple is running a “bake-off” between two approaches.

One version of the new Siri, code-named Linwood, is based on Apple’s own technology.

The other, Glenwood, uses external AI models. Executives Craig Federighi, Apple’s software chief, and Mike Rockwell, head of the Vision Pro headset project, are overseeing the effort.

Weighing partnership options

Apple has traditionally sought to maintain tight control over the technologies underpinning its products, prioritising privacy and security.

However, delays in AI development and high-profile departures from its Foundation Models team have intensified pressure on management.

Earlier this year, the company’s AI chief, John Giannandrea, was sidelined from Siri development, while several key researchers departed for competitors.

Among them was Ruoming Pang, the team’s chief architect, who left for Meta Platforms Inc. after being offered a $200 million package.

Despite these challenges, work continues on Apple’s own systems.

The company has begun testing a trillion-parameter model — a major leap from its current 150 billion-parameter systems — although this technology is not yet intended for consumer use.

Meanwhile, Google’s Gemini integration could be run on Apple’s Private Cloud Compute servers powered by Mac chips.

This approach would allow external models to process requests remotely without running directly on users’ devices.

Market and strategic implications

The prospect of Apple turning to Google for a key feature underscores the complexity of the AI race.

Though the two firms are fierce rivals in smartphones and services, they already maintain a lucrative partnership in search, with Google paying an estimated $20 billion annually to remain the default option on Apple devices.

That arrangement is currently under antitrust scrutiny by the US Justice Department.

For investors, the talks highlight Apple’s urgency to close the gap in generative AI.

Chief Executive Tim Cook has told employees that Apple must “win in AI”, noting the company’s history of entering markets late but eventually producing industry-defining products.

At present, discussions with Google remain exploratory, and no formal commercial negotiations are underway.

Apple continues to evaluate whether to move forward with a partner or persist with its own models, leaving the future of Siri’s AI brain undecided.

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