APPLE TURNS TO GOOGLE TO POWER AI UPGRADE FOR SIRI

Summary from the TLDR Marketing newsletter

Apple is upgrading Siri and other services by relying on Google Gemini AI. The multi-year deal reflects that its internal AI could not match Google in capability or scale in the short term, even though it plans to keep Apple Intelligence running on its devices and private cloud systems. Analysts expect consumers to welcome the move as AI features spread across smartphones, even if AI is not yet a primary driver of iPhone purchases. The partnership may raise regulatory scrutiny since past Google deals on Apple devices were worth billions of dollars, including more than $26bn paid in 2021 to secure default search placement.